Why is Aptos (APT) price up today?

Lucknow(CoinChapter.com): Aptos (APT) price rose 15% on Aug 10 as traders assessed the announcement of its strategic partnership with tech giant Microsoft (MSFT). Moreover, the price rally arrives just ahead of an impending supply unlock, raising questions about the longevity of these gains.

Supply Unlock and Market Dynamics

Recent data reveals that slightly over 2% of the APT supply, estimated at $33 million based on prevailing prices, is scheduled to be unlocked on Aug 12 at 05:30 am UTC. This unlocking of tokens is a carefully orchestrated move that reduces the locked tokens to 80% of the total supply.

However, it’s important not to underestimate the impact of supply unlocks. With unlocked tokens entering the open market, the circulating supply of APT tokens will expand. This can potentially introduce a bearish sentiment if token holders opt to liquidate their holdings without corresponding demand, leading to a rapid price drop.

Notably, Aptos has previously faced criticism from the wider cryptocurrency community due to concerns regarding its tokenomics model. During the issuance of 1 billion tokens, almost 50% were allocated to core contributors, investors, and the Aptos Foundation.

This allocation strategy raised concerns about the equitable distribution of tokens. By contrast, Ethereum allocated only 9.9% of its ether (ETH) supply to its founding team and an equivalent percentage to the Ethereum Foundation during its 2015 launch.

Microsoft Collaboration and Technological Advancements

The surge in token value coincides with an exciting announcement from Aptos Labs, a blockchain initiative launched by former employees of Meta Inc.

Aptos Labs revealed its plans to leverage Microsoft’s cutting-edge artificial intelligence technology to expand its range of tools and services. Notable forthcoming products include the “Aptos Assistant,” an advanced chatbot.

A tailored suite of AI tools for smart contract programming is also a part of this offering.