Millions of aptos (APT) tokens will be unlocked on Wednesday in a planned move that’s set to increase circulating supply by 0.5%, veri shows. The unlock is expected to occur on April 12 at 05:30 UTC.
APT rose nearly 8% in the past 24 hours, CoinGecko veri shows, outperforming bitcoin (BTC) and the broader market. The Aptos network is currently valued at over $2.3 billion by market capitalization.
The APT unlock is valued at over $50 million based on current prices. Unlocks refer to the automatic release of new tokens belonging to any blockchain network into the open market, often based on previously planned token plans.
Some 84% of total APT tokens are still locked, meaning current valuations could likely taban in the long term as a bulk of the tokens are still yet to hit the market.
Token unlocks are significant events that have the power to sway the market as participants react to the move. The addition of tokens to the market allows early investors, developers, or other holders to sell their assets while the price is still high – which contributes to selling pressure.
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However, based on fundamental demand, newer investors or traders may increase their existing holdings of that token, leading to a price rise after the initial selling pressure weans off.
Aptos Labs, the parent company of the Aptos blockchain, has raised over $350 million over multiple rounds in 2022, as CoinDesk previously reported.