Aptos Market Cap Drops $2B as $134M Token Unlock Approaches.
Aptos has recently experienced a significant decline in its market capitalization. As of December 6, the market cap stood at nearly $8.25 billion. However, in a shocking turn, it has since dropped to $6.36 billion, losing almost $2 billion in just five days. This steep downturn aligns with growing tensions surrounding the imminent token unlock, an event anticipated to usher in considerable volatility for APT.
In early December, Aptos saw its market cap soar past the $8 billion mark, driven by a price rally to $15.25. Market capitalization is determined by multiplying price by circulating supply. Thus, an increase in price results in a higher market cap.
However, even if prices stabilize but the circulating supply rises, the market cap can still jump. The recent decrease in Aptos's market cap can be linked to a broader market downturn, with many altcoins experiencing price drops from last week's highs.
The decline is further compounded by today's scheduled token unlock. Unlocking tokens involves releasing previously restricted crypto tokens to the public, often following a vesting schedule or promotional event. This process is critical for the crypto market, facilitating a controlled token distribution to maintain stable circulation and market conditions.
According to Tokenomist, Aptos will unlock 2.11% of its total supply today, valued at $134.47 million.
This release could spark substantial volatility around APT. The lack of sufficient buying pressure against the impending supply surge might lead to a notable price decrease.
In recent days, Aptos traded within an ascending triangle, a pattern suggesting a potential uptrend. However, it has since fallen significantly below this pattern's neckline, nullifying the anticipated bullish breakout.
Additionally, the Cumulative Volume Delta (CVD), which tracks buying versus selling volume, has turned negative. A positive CVD indicates more buying activity, whereas a negative CVD, as seen with APT, reflects increased selling pressure.
