- Aptos price has made a strong comeback in the past few weeks.
- The total value locked (TVL) in its ecosystem has surged to $72 million.
- However, on-chain metrics point to worrying user trends.
Aptos crypto price continued its remarkable comeback even as the network experienced substantial weakness. APT, its native token, surged to a high of $16.70, the highest point since October 19. The coin has jumped by more than 395% from the lowest point on record.
Aptos transactions drop
Aptos is a fast-growing Ethereum rival that has better features like faster speeds, low transaction costs, and higher scalability. It was launched a few months ago and has experienced substantial growth and developer interest.
One way to look at this strength is to consider the performance of its Decentralised Finance (DeFi) ecosystem. In just a few months' time, the total value locked (TVL) in the network has surged to an all-time high of $72.29 million.
PancakeSwap is the biggest DeFi app in its ecosystem with a TVL of over $34 million. It has eight more DeFi apps with a TVL of over $1 million. These ones include Tortuga, Aries Finance, and Aries Finance.
Aptos is also gaining traction in the Non-Fungible Token (NFT) industry. Some of its top NFT marketplaces like Topaz, Southffl3, and BlueMove have continued doing well in the past few months. Analysts believe that it could become a key contender in the industry.
However, a closer look at some on-chain data shows that there are some challenges in its ecosystem. First, the rate of address growth has continued dropping in the past few months. On January 17, there were just 9,502 addresses added to the network.
Further, as shown below, after peaking at an all-time high of 43.47 APT, the network fees in the ecosystem have plunged to about 2.86 APT. Most importantly, the number of daily transactions has been in a strong downward trend. Therefore, these numbers paint a picture of a network that is losing steam.
Aptos crypto price forecast
The 4H chart shows that the APT crypto price has been in a strong bullish momentum in the past few days. This week, the coin formed a falling wedge pattern, which is one of the most accurate bullish patterns. This explains why the coin has made a spectacular comeback recently.
Aptos has also moved above the Supertrend indicator and all moving averages. Therefore, I suspect that te coin will retreat in the coming days as investors start taking profits. Such a pullback will see it retest the key support at $14.41.
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