• Aptos (APT/USD) price has seen a strong increase since the beginning of the year, peaking at $20.44 in January.
• A closer look at its network shows that things are not going as well as they appear. Its DeFi TVL has been declining in APT terms and the number of users in its ecosystem has been falling.
• Despite this, the coin is forming a bullish flag pattern, suggesting that the bulls are still in control of the market.
The cryptocurrency market has seen a strong surge in 2021 with many digital assets posting impressive gains. Aptos (APT/USD), formerly known as Diem, is one of the top-performing coins this year, peaking at $20.44 in January which was about 448% above its lowest point this year. Despite this impressive performance, a closer look at the network shows that things are not as good as they appear.
Aptos total value locked (TVL) in DeFi has been in a strong growth in dollar terms in the past few months. It stands at an all-time high of $76 million. However, when looking at the TVL in Aptos terms, the picture changes. The number has been falling, with the current TVL being 4.26 million APT, which is lower than its all-time high of 17.6 million APT. Other Aptos metrics also paint a concerning picture. According to AptosScan, the number of transactions in the network has been declining, the number of active addresses has decreased, and the number of daily active users has been on the decline as well.
Despite these on-chain metrics, the coin is currently forming a bullish flag pattern. This suggests that the bulls are still firmly in control of the market and the coin could be poised for further gains. However, the coin will need to see an increase in on-chain activity in order to sustain this momentum. This will be key in determining whether the coin will be able to break out of the flag pattern and continue its bullish momentum.