How Aptos is Paving the Way for Web3 Expansion
The proliferation of blockchains has enabled developers to deploy tens of thousands of decentralized applications at an accelerating pace. However, to truly achieve widespread adoption in the Web3 era, blockchain infrastructure must evolve to become as scalable, trustworthy, and cost-efficient as cloud-based systems.
The Aptos blockchain was designed with a focus on scalability, security, reliability, and upgradeability. These principles combine to create a foundation capable of delivering Web3 technology to the mainstream.
To ensure high security and scalability, Aptos employs the Move programming language, originally developed by Meta for its Libra blockchain project. The Aptos network achieves high throughput and low latency by optimizing hardware usage and enabling highly parallel execution of tasks.
A Highly Efficient Network
The Aptos development team claims its network can process more than 150,000 transactions per second (tps), compared to Ethereum’s mainnet tps of around 12 to 15. Unlike many blockchains that process transactions sequentially, Aptos re-executes or aborts failed transactions, avoiding bottlenecks.
The blockchain’s modular architecture allows for greater client flexibility and seamless updates. Aptos also integrates on-chain change management protocols to support rapid deployment of technological innovations and new Web3 use cases.
APTOS (APT), the platform’s native token, has a capped total supply of 1 billion tokens. The past trading week has been exceptional, with APTOS more than doubling in price since the start of January 2023.
Macroeconomic Uncertainty Casts a Shadow
While many cryptocurrencies have managed to recover from a bearish trend, rapid rallies are often followed by market corrections. Early 2023 calls for a cautious investment approach due to looming recession risks and global macroeconomic uncertainties.
The US stock market continues to face downward pressure as concerns over the Federal Reserve’s aggressive interest rate hikes persist. Analysts predict a global recession that could once again impact financial markets, including the cryptocurrency sector, which often mirrors stock market trends.
For instance, analysts expect S&P 500 companies’ Q4 year-over-year earnings to decline by 2.8%, compared to a projected 1.6% drop earlier in the year.
“The earnings outlook points to a recession. Investors are realizing that bringing inflation under control has significant economic costs, given the Fed’s aggressive tightening measures.”
– Sam Stovall, Chief Investment Strategist, CFRA Research
APTOS (APT) Technical Analysis
Since the start of January 2023, APTOS has doubled in value, climbing from $3.41 to $8.83. Currently priced at $7.90, it remains about 24% below its October 2022 peak.
The past week has been remarkable for APTOS, and as long as its price holds above $7, the bullish trend is expected to persist, keeping it in the BUY-ZONE.
Key Support and Resistance Levels for APTOS (APT)
On the chart (covering the period from October 2022), key support and resistance levels are marked to help traders gauge potential price movements. APTOS is still in a bullish phase, and if it surpasses $9, the next target could be $10. However, $7 serves as an important support level. A break below $7 could trigger a SELL signal, with subsequent targets at $6.5 and $6. If the price dips below $6, it could test levels around $5 or lower.
Bullish Factors Supporting APTOS (APT)
Trading volumes for APT have surged significantly over the past two weeks. If the price breaks the resistance at $9, the next target could be $10.
Traders are accumulating APTOS despite anticipated market volatility. Moreover, the price of APTOS remains closely linked to Bitcoin. A Bitcoin price above $22,000 could further push APTOS higher.
Bearish Risks for APTOS (APT)
Despite its recent 100% rally, traders should remember that APTOS could still fall below $6. The bankruptcy of the FTX exchange continues to weigh on investor sentiment, and fears of a global recession loom large. The current support level at $7 is critical. If breached, APTOS could decline to $6.5 or lower.
What Experts Are Saying About APTOS (APT)
APTOS has shown strong early-year gains, but its future depends on both technical and fundamental factors. Technical analysis suggests further upside potential, but macroeconomic challenges remain a key driver of the broader crypto market.
Scott Wren, a senior global market strategist at Wells Fargo, warns of potential market turbulence and highlights the risk of accelerating crypto selloffs if Bitcoin falls below $20,000.
Odricanje od odgovornosti: Cryptocurrency investments are highly volatile and unsuitable for everyone. Do not speculate with funds you cannot afford to lose. This information is for educational purposes only and does not constitute financial advice.
