Aptos ($APT): 3 Core Problems With APT's Fundamentals 🧐

There was quite some hype about Aptos lately.

This is always a good signal to take a closer look at the fundamentals of a project.

Spoiler: In terms of Aptos, they paint a rather pessimistic picture.

But first things first. To understand this, we must first look at some of Aptos' key statistics.

Here we go:

• Total Fees Earned YTD: $1.4M

• Total Spent This Year: $504M

• Fully Diluted Valuation (FDV): $14.5B

Here are 3 Core Problems with $APT’s Fundamentals

🤯 Price-To-Fee Ratio Is Astronomical

Aptos currently boasts a P/F (price-to-fees) ratio of over 10,000%. A P/F of 10,000 implies that for every $1 Aptos generates in fees, its valuation is $10,000.

This is astronomically high, especially compared to traditional business models, even for growth-oriented sectors.

𐬺 Transaction Fees Are Tiny

The average transaction fee is just $0.001. Even with over 4 million daily transactions now (up from under 2 million earlier this year), it's barely moving the needle.

⚡️ Breaking Even is a Massive Challenge

If Aptos were to 5x its transaction fees and scale daily transactions by 100x (an astronomical leap), it would break even under current costs.

👉 Valuation vs. Reality

Defending an FDV of $14.5B requires a fundamental shift in revenue and user activities far beyond current levels.

Certainly, crypto pricing often factors in future possibilities more than current fundamentals. This is understandable for an emerging industry.

But, as the space matures, fundamentals will matter. Projects like Aptos, with valuations far outpacing their revenue, will face brutal corrections unless they can scale dramatically.

Let me know your thoughts!