The token of layer 1 blockchain Aptos has been surging since the start of the year, hitting a new all-time high on Wednesday.
According to coindesk, The token APT hit a new all-time high, up 427 percent since Jan. 1, according to CoinDesk data. APT recently changed hands at $18.30, up more than 46% in the past 24 hours. The token’s gains outpaced the recent moves of bitcoin and ether, the two largest cryptocurrencies by market capitalization. Bitcoin is up 30% in 2023, while Ethereum is up 34%.
However, the token’s funding rate remains negative, suggesting traders expect the rally to be short-lived. Christopher Newhouse, a cryptocurrency derivatives trader at cryptocurrency market maker GSR, said: "If traders are willing to open short positions at negative funding rates, they must believe that the coin will fall." It might have gone too far."
Aptos, founded by two Ex-Meta Platforms employees, has come under some scrutiny for its APT token distribution since launching its mainnet in October. Investors and the Aptos Foundation received nearly half of the 1 billion tokens issued.
The non-fungible token market on Aptos may have contributed to the growth, as CoinDesk reported earlier this week. Collectibles such as Aptomingos and Aptos Monkeys attracted tens of thousands of transactions on Monday, according to data from Topaz, an Aptos NFT marketplace. Aptomingos saw a 250% increase in transaction volume in the past 24 hours, according to Topaz.
