Crypto currency world witnessed a significant development today. Altcoin Aptos (APT) unlocked $294 million worth of tokens. Following the development, the token price is seen trading at $11.90. Let’s take a look at the situation before the token unlock.
Aptos (APT) Unlocks $294 Million Worth of Tokens
According to TokenUnlocks data, approximately 25 million locked APT tokens were unlocked today, including those held by early investors. These tokens are now on the market. Research indicates that prices historically fall during such events as the increase in supply outpaces investor demand for the asset. Indeed, the APT price had already experienced a 30% decline over the past four days before the development.
As the Layer-1 Blockchain Aptos (APT) unlocks $294 million worth of tokens, all eyes are now on the next unlock event. The following unlock for Aptos is scheduled for May 12, 2024. The total amount of tokens to be unlocked on that date is approximately 11.3 million APT.
How Was the Token Distribution Structured?
Of the APT tokens released into the market, approximately $141 million worth went to core participants, $100 million to investors, and $38 million to community members. An additional $16 million worth of tokens was allocated for the ecosystem development foundation.
According to research by crypto analysis firm The Tie, price declines are historically common in such events where the increase in supply surpasses investor demand for the asset. CoinGecko data shows that the APT tokens to be released represent only 6% of the current circulating supply, yet nearly double the daily trading volume on exchanges. APT was trading at $11.90 at the time of writing.
What Can Be Expected for Aptos Price Moving Forward?
Firstly, Aptos (APT) has just navigated a major event, so it can rest easy until May 12. However, Bitcoin‘s price movement will be a decisive factor to focus on. If Bitcoin starts a new rally, it will positively reflect on APT’s price.
If a rally occurs, APT’s price will first attempt to surpass the $14 level. Subsequently, it is expected that APT’s price will try to break through the $15 and $16 levels. If there is a decline, the critical support level for APT is at $11.
