Aptos price has seen an upward trend for six consecutive days as Bitcoin and other altcoins continue to recover.

Encouraging User Metrics

Aptos, a relatively new layer-1 blockchain, has demonstrated strong user metrics, reflecting growing interest in its network. Data indicates that the number of addresses has increased from 74,000 in January to over 186,000 currently. This surge in users has significantly boosted transactions within the network. A notable milestone was achieved in May when transactions soared to over 117 million in a single day.

Meanwhile, Aptos’s Decentralized Finance (DeFi) ecosystem is outperforming Cardano, one of the major cryptocurrencies. Aptos’s total value locked (TVL) has reached a record high of 53.4 million APT, up from a year-to-date low of 11.5 million APT. Additionally, the volume of stablecoins within the ecosystem has risen to over $120 million, significantly higher than the YTD low of $49 million. Stablecoins are crucial for any blockchain as they provide liquidity and serve as a proxy for economic activity.

High Staking Yield but Dilution Risks

Aptos has attracted investors with its higher staking yield compared to most cryptocurrencies. With a staking yield of 7%, it surpasses Ether’s 3.4%, Solana’s 6.5%, and Cardano’s 2.87%. Approximately 79% of Aptos in circulation have been staked, serving as a positive catalyst.

However, dilution risks remain, which could explain why the APT price has dropped by 63% from the YTD high. Aptos tokenomics reveal that it has 367 million unlocked tokens and 632.50 million locked. Tokens are unlocked monthly, a process that will continue until February 2029. This unlocking can be bearish for a cryptocurrency due to its dilution effect, as some tokens will be allocated to staking pools, diluting existing holders.

For instance, Mantra (OM) yields 21% with all tokens in circulation, and most of Avalanche’s tokens have been unlocked, making its 8% yield appear safer.

Aptos Price Daily Chart

The volume of Aptos tokens has been on a downward trend since peaking in March. Its price remains below the support level of $7.70 (the lowest point in May) and the 100-day moving average. This situation could indicate that the current recovery is part of a dead cat bounce.

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