Aptos (APT) has been making headlines recently, with a sharp jump in price and a high trading volume. The tech giant Microsoft’s partnership with Aptos Labs on blockchain-based AI tools caused a significant reaction in the market, leading to a 17% surge in APT’s price. While there has been a slight pullback since then, data suggests that the rally may not be over just yet.
When the news of Microsoft’s partnership broke, there was a frenzy of social media discussion surrounding Aptos. This surge in social dominance, which measures how much discussion about the top 100 assets on social media is related to Aptos alone, contributed to the rally topping out and the subsequent price decline. Too much hype can have the opposite effect and dampen market enthusiasm.
Fortunately, the social dominance has now calmed down, indicating that hype has returned to healthier levels. This suggests that the market sentiment has stabilized, and there is less fear of missing out (FOMO) driving the price. However, despite the pullback, Aptos still holds gains of around 9%, making it the best performer among the top 100 assets by market cap.
Interestingly, the trading volume of APT has continued to be extremely high, reaching its highest point since March. This indicates that investors have not lost confidence in the cryptocurrency and have continued to trade even after the rally’s pullback. Sustaining significant price movements requires a large amount of volume, and the growing trading volume may be an indication that the Aptos rally is not over yet.
Another metric to consider is the development activity of Aptos. The graph shows a constant rise in development activity leading up to the announcement of the partnership with Microsoft. This suggests that the developers may have been preparing for the collaboration, indicating a commitment to the project’s progress and growth.
While there has been a slight decline in price after the initial surge, Aptos continues to show promising signs of further gains. The return to healthier levels of social dominance, combined with the high trading volume and increased development activity, suggests that the market sentiment remains positive for Aptos. Investors should keep a close eye on this cryptocurrency as it may have more to offer in the coming days.
Featured image from iStock.com, charts from TradingView.com, Santiment.net