Investors in the crypto market have seen an unprecedented surge of bullish activity over the last few months, with many tokens reaching fresh all-time highs. One of the standout tokens has been Aptos (APT), which has grown over 400% since the start of the year and almost touched $20. But what’s driving this curious movement?
Curious Surge: Aptos Token’s Value Raises Questions Among Traders
The recent surge in the value of Aptos tokens has raised a lot of questions among traders. Most tokens have been driven by a lack of better options elsewhere, coupled with the bullish sentiment in the market. But Aptos has been a curious outlier. Despite a lack of decentralized applications, technology activity, and low circulation supply, the token’s value has been steadily increasing.
Data suggests that the South Korean won pair on Upbit is one major force standing behind the APT rally. Compared to the rest of the market, the Upbit pair is commanding a premium of 1-3% against the USDT pair. Upbit also captures nearly one-third of the total trading volume at the moment. This could mean that a “Kimchi premium” is driving the prices of the crypto higher.
Another potential driver of the APT rally is the short squeeze phenomenon. South Korean traders have been targeting heavily shorted tokens like Bitcoin Cash and Aptos in the first half of June in a bid to hunt the liquidation levels of short players by staging a short squeeze. In short, a short squeeze is when prices sharply rise, leading traders who had bet against the token’s prices to buy at a loss or face forced liquidation.
Caution and Responsible Trading Amidst Aptos Token’s Price Surge
The Aptos team’s behavior has also come under scrutiny. Reports indicate that the team’s dev wallet has been sending large amounts of money to Binance during price surges. The fact that the Aptos team is actively contributing to the price surge is a cause of concern for traders. It’s important to trade responsibly and not rely solely on investments for financial support.
Potential Opportunities Amidst Volatility and Manipulation
Ultimately, traders should be cautious when investing in the Aptos token. With its volatility and manipulation, it could see huge spikes and drops before reaching its fair value. Despite this, investing in Aptos could still offer lucrative opportunities if viewed from a technical standpoint. Aptos tokens have low circulating supply and high trading volume, with daily unlocks creating a perfect combination for high volatility.
In short, Aptos is a coin that should be approached with caution, but its potential should not be understated. Aptos, with support from Binance and growing popularity, has the potential to surprise traders in the future.
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