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Aptos unleashes over 24 million tokens in major market move

TL;DR

  • Aptos, a Layer 1 blockchain, released 24.8 million APT tokens, making up 8.9% of its circulating supply, valued at approximately $201.7 million.
  • The token release affected market prices, with a similar event in November causing a 13.4% drop in APT value, although the current market shows a bullish trend.

The Layer 1 blockchain Aptos, initiated by former Meta executives, has executed a substantial token release. On December 12, the blockchain network unveiled 24.8 million APT tokens, constituting 8.9% of its circulating supply, estimated at around $201.7 million. This release is part of a series of scheduled token unlocks, which are closely watched by investors and market analysts for their potential impact on token prices and market dynamics.

The distribution of this release saw core contributors receiving the largest share, approximately $96.4 million. Investors were allocated $68.4 million, while the community and the Aptos Foundation received $26.1 million and $10.8 million, respectively. This distribution reflects the blockchain’s commitment to its ecosystem’s various stakeholders, including developers, investors, and the broader community.

Market response and historical trends

Historical data suggests that such token unlocks can significantly affect the market value of the cryptocurrency. Following the unlock on November 12, the price of APT experienced a decline of 13.4% over nine days, dropping from $7.82 to $6.77, before regaining its value. APT trades at $8.72 at the time of press, showing more than a 4% increase since the last unlock. This trend indicates a generally bullish sentiment in the broader crypto market despite occasional fluctuations due to these scheduled releases.

Aptos, a recent entrant in the blockchain space, is known for using the Move programming language, originally developed at Meta. The platform aims to provide a faster and more scalable solution than existing networks. However, it faced a setback with a five-hour outage in October, leading to temporary suspension of APT deposits and withdrawals on major crypto exchanges like Binance, OKX, and Upbit.

Upcoming unlocks in the crypto industry

Looking ahead, significant token unlocks are on the horizon for other major cryptocurrencies, including ApeCoin and Optimism. ApeCoin, associated with the Bored Ape Yacht Club NFT community, is set to release 15.6 million APE tokens, about 4.2% of its circulating supply, on December 17. Meanwhile, Ethereum Layer 2 project Optimism will unlock 24.2 million OP tokens on December 30, representing 2.7% of its circulating supply.

These upcoming events are critical for market observers and participants as they provide insights into these tokens’ supply dynamics and potential price movements. Such unlocks often lead to short-term volatility, but they also offer opportunities for long-term investors and the broader community to deepen their engagement with these blockchain ecosystems.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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