Aptos Blockchain, also known as APT, is a new layer-1 proof-of-stake blockchain that has recently garnered a lot of attention in the crypto community. It is being touted as the next big thing in the world of blockchain with some calling it “Solana killer”.
With its unique features and innovative solutions to common problems other blockchains face, Aptos has become a hot topic of discussion amongst investors, tech enthusiasts, and cryptocurrency traders.
However, before investing in Aptos, it is essential to understand what it is and what it offers.
In this article we will cover the key features of Aptos, its underlying technology, the current market trends, and analyze its potential as an investment opportunity.
So, let’s start with the basics. 👇
What is Aptos?
Aptos is a new Layer 1 blockchain that incorporates Proof-of-Stake (PoS) consensus and a parallel transaction processing system, which we will discuss further on.
Aptos is designed to achieve high transaction throughput, with a theoretical capability of over 100,000 transactions per second. The blockchain was created by former Meta engineers Mo Shaikh and Avery Ching and is considered the successor to Meta’s discontinued blockchain project, Diem.
Aptos funding & support
The Aptos project has generated a significant buzz in the cryptocurrency industry. In March 2022, the startup raised $200 million in a seed round led by Andreessen Horowitz. Another successful funding round in July raised $150 million for Aptos, with FTX Ventures and Jump Crypto leading the funding round. Two months later, the startup raised even more, reaching a valuation of $4 billion, in a venture funding round led by Binance Labs.
It is worth mentioning that all of these funding rounds took place before Aptos even launched its mainnet. On October 17th 2022, the Aptos blockchain went live on mainnet, with 110,235 eligible addresses receiving 150 APT tokens as a reward for early participation in the testnet. In only a couple of days, the Aptos blockchain has achieved a fully diluted market capitalization of around $9.2 billion, as reported by CoinGecko.
Aptos Labs – the team behind Aptos
The co-founders mentioned previously are the only members of the team with publicly disclosed names. Shaikh and Ching are both former employees of Meta (formerly Facebook).
They were behind the initiatives to develop the Diem blockchain and the Novi cryptocurrency wallet. As you may be aware, Meta has shelved these initiatives. However, their expertise in the blockchain field has allowed them to bring their ideas to life through the Aptos project.
The team at Aptos Labs comprises highly qualified individuals, including engineers, researchers, strategists, designers, and builders. All members are dedicated to ensuring that decentralized technology is accessible to all people worldwide, regardless of their background, and can be scaled to support billions of users.
Aptos Blockchain Explained
Let’s look at some technical features that make Aptos so interesting for its supporters and may provide an edge over its competitors.
Move Programming Language
Aptos is built using the Move programming language which provides flexibility and allows for custom transactions and contract creation. Thanks to Move, Aptos has potential to increase its transaction speed to the values they promised.
Move also makes it possible to create custom resources – objects that cannot be duplicated or deleted. This, in turn, makes it very hard for anyone to spam transactions or make malicious changes to the blockchain.
BFT Consensus Protocol
Most other blockchains use a consensus protocol that processes all transactions in order – one after another. This creates limitations in terms of the throughput capability of a network.
Aptos uses Byzantine fault tolerant (BFT) consensus protocol, which allows for multiple transactions to be processed in parallel. This way, the throughput of a network can be increased significantly.
Aptos TPS (Transactions Per Second)
So, with all the features we described above, how does Aptos blockchain perform?
As of February 1st, 2023, the current rate of transactions on the Aptos blockchain is 7 TPS, with 103 active validators. The average transaction rate over the last month is 15 TPS. This is significantly lower than the promised 160,000 TPS, which is a major point of controversy in the crypto community.
A blockchain’s ecosystem is a major factor in its success. Though the blockchain was launched only a couple months ago, there are already a multitude of projects created for it.
Some of Aptos’ most well-known projects include NFTs, exchanges, launchpads, wallets, and infrastructure applications. You can browse the entire list of Aptos-based applications on their ecosystem page.
What is APT token?
APT is an Aptos native token. Not long after the Aptos blockchain launch it has solidified itself on the Coinmarketcap’s Top 100 list. APT’s market cap surpassed $1 billion a few days after the ICO.
As of February 2023, APT has a market cap of $2,7 billion and daily trading volume of over $800 million.
When the Aptos blockchain was launched, the community was outraged to find that the information about total supply, issuance rate and token distribution was not made public. After this has driven the price down, the team behind Aptos has revealed this data to the community.
With 160 million tokens in circulation, the following shows a distribution of the Aptos native token:
- Community: 51.02%
- Core contributors: 19%
- Foundation: 16.5%
- Investors: 13.48%
The Aptos Foundation website has detailed distribution timetables and token supply forecasts.
Is Aptos (APT) a good investment?
Aptos has made a lot of noise in the media since its release, with some calling it a “Solana killer” and others accusing the developers of making false promises.
Still, to understand whether a project is worth considering investing into, it’s important to understand its strengths and weaknesses.
What makes Aptos special?
Here are some things that speak in favour of APT as an investment opportunity:
Experienced developer team – Former developers for the Meta blockchain currently work for the Aptos Labs company.
High network security – the blockchain offers protection against transaction spamming & other security threats
High TPS parallel processing engine – thanks to the BTF consensus protocol, the throughput of the network can reach over 100,000 TPS
What are Aptos drawbacks?
And here are some points that raise concern in some potential investors:
Controversial launch – some investors are concerned about the lack of transparency that the Aptos team has shown during the blockchain launch
Over-promising concerns – the blockchain’s current throughput averages at about 15TPS, as opposed to the 100,000+ TPS they promise
Aptos Price Predictions
DigitalCoinPrice projects that the price of one APT will rise from its present level to $58.68 by 2025, a gain of 250.58%. Interestingly, the Fear & Greed Index has reached an extraordinary level of 64.56 (extreme fear), although all technical indications point to a bullish market.
DigitalCoinPrice’s forecasting data shows the following price predictions over the years to come:
2023: Min – $14.65, Avg. – $33.82, Max – $35.85.
2025: Min – $49.56, Avg. – $57.49, Max – $60.50.
2030: Min – $163.67, Avg. – $172.53, Max – $176.32.
The Takeaway – Future of Aptos
It is difficult to tell where Aptos will head in the future. It has shown a very solid growth rate in the first months after its release. On top of that, the idea and the technology behind it suggest that there is a real potential for providing serious value to the crypto community.
At the same time, Aptos has given birth to multiple controversies, which means that they have to keep proving their intentions, especially in the months to come.
That being said, Aptos blockchain is certainly one of the most interesting projects released in 2022 and we will definitely be keeping a close eye on it, along with the rest of the crypto community.
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The information provided in this article is the author’s opinion and not investment advice. There is always the risk of seeing your investment go down in value due to price fluctuations. Make sure your portfolio aligns with your investment objectives and risk tolerance by reviewing it regularly and investing only money you can afford to lose.