Aptos Surges While Bitcoin and Ethereum Struggle: What's Driving the Shift?
Decrypt2 months ago
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Aptos Surges While Bitcoin and Ethereum Struggle: What's Driving the Shift?

Market Sentiment
aptos
bitcoin
ethereum
etf
marketsentiment
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Summary:

  • Aptos surges over 9% following Bitwise's ETF filing.

  • Current price of Aptos is approximately $6.16, down 38% in the past month.

  • Community-led ‘takeover’ initiative contributes to 17% price spike in Aptos.

  • Bitcoin experiences a nearly 18% decline, trading around $84,325.

  • Ethereum struggles at approximately $2,320, down 26% over the month.

Aptos Climbs Amidst Market Struggles

Aptos has seen a remarkable increase of over 9% in its trading price on Thursday, following a significant development: Bitwise's filing for an exchange-traded fund (ETF) that tracks its spot price. This surge comes despite Bitcoin and other leading cryptocurrencies enduring substantial losses in recent days.

Currently, Aptos (APT), the token of the Aptos layer-1 blockchain, is trading at approximately $6.16, having experienced a 38% decline in the last month due to a broader market downturn.

Alan Orwick, co-founder of Quai Network, notes that Aptos' rise underscores a renewed interest in the alt-L1 category and the potential for institutional investment in crypto assets.

The Community Takeover

In a unique twist, a community-led initiative dubbed a “community takeover” has recently gained traction, led by a memer named BuzzlamicJihad. This movement has contributed to a 17% spike in Aptos’ price over the last 24 hours, making it one of the top gainers among the top 100 cryptocurrencies.

ETF Filing and Institutional Interest

The recent ETF filing by Bitwise is a crucial step as it aims to register a spot Aptos ETF in Delaware, pending approval from the Securities and Exchange Commission. This initiative is part of the ongoing interest in Aptos, a project developed by former members of Meta's failed Diem initiative. The Aptos blockchain enables users to build decentralized applications and launch tokens, positioning it as a strong competitor to Ethereum.

Bitcoin and Ethereum's Current Struggles

In stark contrast, Bitcoin has faced a nearly 18% decline over the past month, currently trading at around $84,325. The Fear and Greed Index for Bitcoin is indicating extreme fear, reflecting the current bearish market conditions. The largest cryptocurrency has seen its assets drop significantly, with bitcoin funds losing nearly $2.5 billion in assets recently.

Ethereum is also struggling, with a price of about $2,320, reflecting a 26% drop over the past month. Investors are cautious due to macroeconomic uncertainties and potential trade wars, leading to a retreat from riskier digital assets.

Mixed Performance in AI Tokens

Interestingly, tokens related to artificial intelligence have shown mixed performance despite Nvidia's impressive earnings report. While NEAR and Dfinity's Internet Computer (ICP) saw slight increases, other tokens like Bittensor (TAO) experienced declines. This variability has led to skepticism about the sustainability of the crypto AI narrative.

Edited by James Rubin

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