Aptos

Bitcoin

Resistance

when

Gains

According to a report by Messari, Layer 1 (L1) blockchain Aptos experienced substantial gains in key metrics during the first quarter (Q1) of the year. The growth was driven by the surge in Bitcoin prices to new <a href="https://www.newsbtc.com/aptos-apt/aptos-labs-teams-up-with-microsoft-sk-telecom-for-new-institutional-platform-apt-soars-3/" target="_blank" rel="noopener ">record highs</a> and increased capital inflow in the market.&nbsp; 
However, Aptos’ native token, APT, has struggled with price performance, recording modest gains compared to other top cryptocurrencies. 
<h2 id="aptos-network-activity-surges">Aptos Network Activity Surges</h2> 
The <a href="https://messari.io/report/state-of-aptos-q1-2024" target="_blank" rel="noopener nofollow">report </a>highlighted that Aptos’ circulating market cap increased 127% quarter-on-quarter (QoQ) to $6.6 billion. 
This growth outpaced other projects with similar market caps, improving market cap rank from 33 to 22. Despite this growth, APT’s price experienced a more modest increase of 76% QoQ.&nbsp; 
<img loading="lazy" decoding="async" class="size-large wp-image-607852" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_123.jpg?w=847&amp;resize=847%2C426" alt="Aptos" width="847" height="426" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_123.jpg?w=847&amp;resize=847%2C426 847w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_123.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_123.jpg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_123.jpg?w=360 360w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_123.jpg?w=750 750w" sizes="(max-width: 847px) 100vw, 847px" data-recalc-dims="1"> 
Aptos revenue, which encompasses all fees collected by the protocol, grew by 37% to $475,000. However, when denominated in APT, the revenue decreased by 10%. All revenue generated by Aptos is burned, but these burned tokens have not significantly reduced inflation.&nbsp; 
APT <a href="https://www.newsbtc.com/aptos-apt/aptos-apt-surges-94-and-approaches-all-time-highs-will-it-break-the-20-barrier/" target="_blank" rel="noopener ">inflation </a>started at a 7% annualized rate and is set to decrease by 1.5% each year until it reaches 3.5%. By mid-October, the inflation rate had reduced to just under 6.9%. Additionally, there was inflationary pressure from the genesis supply unlocks, with almost 31% of the genesis supply distributed by the end of Q1. 
Looking at network activity, Aptos witnessed a significant increase in transactions and active addresses in Q1. Average daily transactions and addresses saw 66% and 97% QoQ growth rates, respectively.&nbsp; 
Despite the increased <a href="https://www.newsbtc.com/aptos-apt/aptos-market-cap-skyrockets-574-million-worth-of-apt-tokens-set-to-shake-the-market-in-q1-2024/" target="_blank" rel="noopener ">transaction activity</a>, the average transaction fee decreased by 45% QoQ to 0.0006 APT ($0.007). Furthermore, average daily new addresses grew by 91% QoQ to 44,000, and the weighted average one-month retention rate increased by 82% QoQ to 14%. 
<h2 id="apt-staked-tokens-decrease-5">APT Staked Tokens Decrease 5%</h2> 
Regarding staking, APT staked decreased by 5% to 861 million tokens. However, when denominated in USD, the staked market cap grew by 68% QoQ, surpassing $14 billion.&nbsp; 
<img loading="lazy" decoding="async" class="size-large wp-image-607851" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_122.jpg?w=859&amp;resize=859%2C423" alt="Aptos" width="859" height="423" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_122.jpg?w=859&amp;resize=859%2C423 859w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_122.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_122.jpg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_122.jpg?w=750 750w" sizes="(max-width: 859px) 100vw, 859px" data-recalc-dims="1"> 
As seen in the chart above, Aptos also experienced growth in its decentralized finance (DeFi)<a href="https://www.newsbtc.com/news/defi/sui-overtakes-bitcoin-aptos-defi/" target="_blank" rel="noopener "> total value locked </a>(TVL), which increased by 376% QoQ to $573 million. 
According to Messari, this increase was not solely due to APT price appreciation; TVL also grew by 170% QoQ in APT terms. Additionally, Aptos’s stablecoin market cap nearly doubled QoQ, reaching $97 million. APT Struggles To Break $8.80 Resistance 
Despite these positive developments, APT’s price performance has faced challenges. The native token has declined over 16% in the past month, resulting in a modest 2.7% surge year-to-date. This contrasts with the double or triple-digit gains seen by other top cryptocurrencies. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/RMIhQsWG/" alt="Aptos" width="1815" height="858"> 
Currently trading at $8.46, APT has struggled to surpass its nearest resistance wall at $8.80, leading to a consolidation phase between $8.20 and $8.70 over the past month.&nbsp; 
Featured image from Shutterstock, chart from TradingView.com&nbsp;

Aptos Posts Triple-Digit Gains In Key Metrics, Yet APT Price Struggles At $8.40

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