- Aptos price has been in a strong sell-off in the past few months.
- PancakeSwap has helped push its total value locked to over $57 million.
Aptos price pulled back on the final trading day of 2022 as the network’s total value locked (TVL) surged to a record high. APT rose to a high of $3.5, which was the highest level since December 28. It has jumped by more than 8% from the lowest level this year.
Aptos TVL surges
Aptos is a relatively new blockchain project that makes it possible for developers to build quality decentralized applications. It is a repurposed blockchain project of Meta Platform’s abandoned web3 project.
It uses a programing language known as move and promises increased scalability, reliability, and security compared to existing blockchains. For example, the network can handle over 160,000 transactions per second (TPS), making it significantly faster than Visa and Mastercard.
Other features of Aptos are the block-STM technology, which creates an engine for efficiently handling smart contracts. It also uses the Byzantine fault tolerant (BFT) technology that analyses individual state on-chain and thn updates validators as needed.
Aptos price has been in a freefall in the past few months. This decline was mostly because of a confluence of factors. First, Aptos was partially funded by FTX, the collapsed crypto exchange. As such, there are concerns that the company’s liquidators will want to sell some of these holdings. This explains why Solana and Serum have all collapsed.
Second, the decline has been because of the monetary policy of the Federal Reserve. The Fed decided to hike rates by 450 basis points in 2022 and pointed to more hikes in 2023.
Further, APT price dropped as the fear and greed index tumbled to the fear zone. Investors are fearful of the rising contagion in the crypto industry.
As such, the fact that Aptos TVL surged to an all-time high of $57.13 million. This increase has been led by PancakeSwap, which has continued growing amid the crypto sell-off.
Aptos price prediction
The four-hour chart shows that the APT price has been in a strong sell-off in the past few months. This decline culminated in moves below the important support level at $3.47, the lowest level in November. It has moved below the 25-day and 50-day moving averages.
And most recently, the coin has retested the level, in what is known as a break and retest pattern. Therefore, the outlook of the coin is still bearish, with the next key support level to watch being at $2.50.
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