Aptos Blockchain Network Shows Growth in Q4 2023
The Layer-1 blockchain network, Aptos (APT), experienced significant growth during the fourth quarter (Q4) of 2023. According to a report by Messari, Aptos made notable advancements in various aspects of its ecosystem.
Inflation and Genesis Supply Unlocking
Aptos witnessed a remarkable 126% quarter-on-quarter (QoQ) increase in its circulating market cap, reaching $2.9 billion. Although the price of APT did not rise as much, it still recorded a solid 75% QoQ increase. Quarterly revenue generated by Aptos grew by 10% QoQ, exceeding 46,000 APT.
Aptos implemented an inflation model for APT, gradually decreasing the annualized inflation rate from 7% to 3.5%. The unlocking of the genesis supply also contributed to inflationary pressure on APT.
Upcoming Genesis Supply Unlocking
In Q1 of 2024, another 7.5% of the genesis supply will unlock, releasing $574 million worth of APT tokens. Additionally, $91 million worth of APT will be allocated towards the Ecosystem category. These tokens are intended for grants and incentives.
Aptos Dip in Network Activity
Network activity on the Aptos blockchain slightly decreased in Q4 compared to the previous quarter. Average daily transactions decreased by 1%, while average daily active addresses decreased by 31%. However, two notable events in Q4 contributed to increased network usage.
The number of new addresses created per day decreased by 33% in Q4, following a significant increase in the previous quarter. The retention rate also fell by 41% QoQ.
Aptos Priorities for Q1 2024
In the first quarter of 2024, Aptos aims to enhance network stability and scalability, expand partnerships and integrations, and implement new features based on community feedback. The upcoming unlocking of the genesis supply and distribution of APT tokens will be closely monitored as it may impact the token’s price and market dynamics.
Hot Take: Aptos Blockchain Network Shows Growth and Faces Challenges
Aptos, a Layer-1 blockchain network, experienced significant growth in Q4 2023. The increase in market cap and revenue, along with the implementation of an inflation model, contributed to Aptos’ success. However, there was a dip in network activity, particularly in new addresses created and retention rate. In Q1 2024, Aptos plans to focus on improving network stability and scalability while preparing for the unlocking of the genesis supply. The upcoming distribution of APT tokens will be a significant event to watch as it may affect the token’s price and overall market dynamics.
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