Aptos announces an improvement over ERC-721 token standard, likely to catalyze APT recovery
- Aptos simplified the process of airdrops and NFT transfers for creators on its blockchain.
- The project is launching a new digital asset standard, an improvement over Ethereum and Solana’s token standards.
- APT price recovery is likely to be catalyzed by the development as it could boost Aptos adoption.
Aptos announced the launch of a Digital Asset Standard (DA) to scale NFTs for creators on its chain. The launch is an improvement over the chain’s existing token standard TokenV1, Ethereum’s ERC-721 and Solana network’s SPL.
The DA is focused on seamless airdrops and enhanced performance on the Aptos blockchain. This development is likely to fuel a bullish narrative for APT price recovery in the long term.
Also read: CRV price extends losses as Curve tokens flood exchanges, whales shed holdings
Aptos reveals new Digital Asset Standard
Aptos Labs, founded by developers of Facebook’s scrapped Diem project, focused on airdrops and transfers on its chain, expanding its services with a new token standard. The project identified the limitations of Ethereum’s ERC-721 and Solana’s SPL, developing an improvement over its own TokenV1 standard.
1/ Introducing Aptos Digital Asset Standard (DA)
— Aptos (@Aptos_Network) August 22, 2023
Token standards are pivotal in establishing a shared foundation to create, manage, and interact with digital assets in a blockchain ecosystem. The new Aptos DA offers builders unrivaled flexibility, composability, and scalability. pic.twitter.com/GmxZLuyyqF
The move was aimed at boosting the flexibility and programmability of tokens on Aptos and provide more efficient on-chain data management. According to Aptos, SPL had interoperability issues, while ERC-721 proved to be inefficient and their TokenV1 standard lacked flexibility. All these issues have been addressed by the new DA.
Aptos’ standard is based on real-world applicability of NFTs and tokens, through airdrops, and soul binding of tokens (a technology to boost digital identity tokens).
Project’s in the Aptos ecosystem: Metapixel, a web3 gaming project, Mokshya, an open-source protocol to build smart contracts and BRAWL3R, an online platform fighter game, have adopted the new token standard.
APT price is $5.907 at the time of writing. APT price yielded 0.97% gains over the previous day on Binance. The token’s price recovery is likely to be catalyzed by the new developments in the project.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
