- Aptos price rally has taken crypto Twitter by storm after 400% gains in under a month.
- Top 20 holders of APT control 97.1% of the token’s circulating supply, driving massive rally.
- This exponential rally is likely drawing to a close with high volumes of APT flooding exchanges like Binance and Upbit.
Aptos witnessed a massive spike in its price since December 29, but on-chain analysts and experts suspect the token’s price rally could soon come to an end. The inflow of APT to exchanges increased, with nearly $20 million worth of Aptos hitting Binance on January 28.
Aptos’ circulating supply is tightly controlled by 20 top wallets holding nearly 97.1%. This makes it likely that APT price gains are unsustainable.
Kimchi premium and its role in Aptos price rally
Aptos price rally has earned the reputation of the “most hated crypto pump” on Twitter. Experts have weighed in on the issue, explaining that the token’s price has been manipulated by Asian traders. Ran Neuner, a crypto industry leader, highlights that APT trade volume on South Korean exchange Upbit is a clear sign of manipulation by traders.
Aptos Foundation is gearing up to host its first global hackathon in Seoul on February 1. The massive price rally witnessed by APT is therefore a precursor to the event. Based on data from CoinGecko, Upbit accounts for 71.27% of APT trade volume as of January 31.
Interestingly, APT price on Upbit is trading around 1% to 3% higher than the market price, which indicates high demand in the region, also termed as the Kimchi premium.
In the past 30 days, the APT trade volume on Upbit consistently accounted for more than 70% of the trading volume, highlighting the role of Korean exchanges in the Aptos price rally.
On Upbit, the trade volume has surpassed $611 million, while on Binance, the APT/USDT pair is hovering around $327 million. The trading activity has therefore been considered dubious by crypto analysts.
Why Aptos bulls could pump the brakes soon
The most interesting caveat of the recent pump in Aptos is the tightly controlled circulating supply of the asset. An on-chain analysis of Aptos wallet addresses – and the supply controlled by them – reveals top 20 APT holders control 97.1% of the token’s circulating supply.
The circulating supply is limited to 161,133,088 while total supply is upwards of 1 billion. According to the APT token unlock schedule, nearly 85% of the supply is locked.
APT locked tokens and circulating supply
Low circulating supply combined with high trade volume has created a combination of high volatility in APT price, according to Neuner.
Top 20 APT holders
Large volume APT holders are taking profits in tranches
On-chain analysis unearthed a wallet address that received 128,627 APT from Binance when Aptos price was $7.82. The owner of the wallet transferred 60,100 APT to take profits when price rallied to $17.72. The wallet holds $1.2 million worth of APT as of Tuesday.
Activity of wallet address that is taking profits on Binance
Similar activity was observed in wallets transferring APT to Binance and taking profits. APT price rally could lose steam, with rising selling pressure and increase in Aptos reserves in exchange wallets.
@lightcrypto, an on-chain analyst on Twitter, suspects that Aptos dev team wallet transferred $20 million worth of APT to Binance on January 28, with the intention of taking profits.
$20 million worth of APT transferred to Binance
Technical experts spot euphoria candles, caution traders
Crypto McKenna, a technical analyst and trader, warned traders that APT could enter the distribution phase after its massive pump. The expert refers to the Euphoria candlestick pattern seen in the chart as a sign of caution for traders opening a long position in the asset.
A bullish Euphoria pattern is composed of three candles, with technical conditions where each candle is bigger than the previous one. When analysts see three consecutive growing bullish candles, where the second one is bigger than the first one, and the third candle is bigger than the second one, the “Euphoria” pattern is confirmed.
Comparing APT with SOL price rally
McKenna noted several similarities between the price rally observed in Solana in the beginning of 2023 and the recent pump in Aptos. The analyst recommends treading cautiously and exiting positions in APT before the “Euphoria candles are blown out.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.