4.5 Million Aptos To Be Released Into Circulation On Wednesday, What This Means For APT
11 April 2023 - 8:00PM
NEWSBTC
Regardless of the global crypto market’s current bullish trend, as
of Wednesday (April 12), roughly 4.5 million Aptos (APT) tokens
will be released into circulation. This release or token unlocked
will occur at 05:30 UTC tomorrow and could hurt APT’s price
action. The upcoming unlocked tokens will be the fourth
vested Aptos tokens in 2023. The first release occurred on January
11, with 4.5 million APT tokens unlocked. The second on February 12
and the third on March 12, releasing the same amount of 4.5 million
tokens. Related Reading: Aptos (APT) Registers Over 7% Gains In The
Last 24 Hours. What’s Next? Millions of Aptos About To Be Released
Into Circulation At current prices, a total of 4.5 million APT set
to be released into circulation tomorrow is worth about $53
million. This amount is nearly 50% of the asset’s trading volume in
the last 24 hours. Should a large amount worth of Aptos like
that get released into circulation without readily available
demand, a significant movement could be on the asset’s price
chart. Notably, the amount of APT set to be released into
circulation would push the asset’s circulating supply from its
current $181 million at the time of writing to nearly above $186
million. The upcoming unlock is a part of the Aptos Foundation’s
monthly token release. Vesting is a process where a certain amount
of tokens are set aside and released gradually over some time
rather than all at once. It is initiated via a smart contract that
holds the tokens and specifies the conditions under which they will
be released. The tokens are released to the founding team,
community members, core contributors, and investors. As for the 4.5
million tokens set to be released tomorrow, 3.2 million will be
allocated to the community, while 1.3 million will be distributed
within the foundation. Usually, tokens sent to the foundation
are used for development and research, market and community
outreach, ecosystem support, staking, and governance.
Related Reading: Aptos (APT) Rises 21% In A Week As Launch Of Web 3
Game Draws Closer What Happens To APT’s Price? Looking back at the
usual token unlock history, APT could experience short-term
volatility or a price plummet based on whether a low demand is
already on the ground after the token release tomorrow. In
February, when the second vesting release occurred, APT saw a sharp
decline in value, plummeting by over 5% daily. However, from a
technical perspective, APT might record an upward trend after the
unlock tomorrow, picking up from its rally today. On the 1-day time
frame, the asset has formed a double bottom and is now set to shape
a W pattern fully. In addition, Aptos has a major high liquidity,
just above $14. Should APT continue its upward momentum and not
invalidate the W pattern, APT could trade above $14 in the coming
days. Meanwhile, over the past two weeks, Aptos has recorded
an upward movement in its trading volume, indicating a possible
accumulation. This means there might already be a readily available
demand on the ground. Even if the circulating supply increases
tomorrow, it might not significantly impact the Aptos market.
Featured image from Unsplash, Chart from TradingView
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