Aptos token has been on a good run in the crypto market since the new year started and this has attracted the attention of many crypto investors and institutions. Several reports show that the Aptos price increased far more than many crypto analysts predicted. Note that whatever is written here is not financial advice but an opinion.
Since the year started, Aptos token has placed itself as one of the top performers within the crypto market. It has done fairly well that it ranks more than Bitcoin, considering its sporadic bull run in the market. Since the beginning of the bullish trend, the Aptos price has increased by over 150 per cent. That's an incredible number looking at the terrible bear market the industry witnessed in the last months.
However, detailed research by analysts shows that Aptos has been performing so well in the crypto market because of certain factors. Most of them have made a lot of crypto whales to splash huge money into the token.
What is Behind Aptos Token Price Surge
Dedicated analysts revealed what has been pulling the strings behind the recent price surge of the Aptos token. In the last 48 hours, Aptos has taken the top tier of the most liquidated tokens in the crypto market. This is a huge feat for the token as it beat many other top cryptocurrencies and earned comparisons with Bitcoin and Ethereum.
A Twitter analyst known as Lookonchain made a detailed post about the Aptos price surge and how it has increased in price in the last 48 hours. Lookonchain said, "A total of 826.99K $APT ($14.59M) was liquidated in the past 24 hours, and $APT is the third largest liquidated asset. Shorts outnumbered longs in the past 24 hours."
Further analysis showed that bulls had absorbed approximately $15 million worth of shorts, which helped send the token to another all-time high. An important detail to note here was that the bull run continued without pauses in between. However, the bears opened more shorts and outnumbered the bulls.
Investors trying to push some funds into this token will have to be extremely careful, as anything could happen to the token. The ownership structure of Aptos' tokens is often faulted as most of the tokens are held by whales who could decide to sell off anytime.
Aptos Ownership Populated by Whales
Many crypto analysts have warned that despite the good market situation Aptos is experiencing, small capital traders should be wary of the token as its owners are mostly crypto whales and large institutions.
Data showed that the top 20 holders of the token currently own 97% of the circulating supply. While this might be good at this point of profit and bullish trend, it is very dangerous to trade with tokens that have this type of ownership structure. When the crypto whales and institutional investors decide to make a profit, it can result in a massive loss on the path of the low-capital investors.
The unlocking period of this token is scheduled to be around November this year. When this happens, whales could take all their profit, leaving the token in a complicated situation.