One of today's best performing cryptocurrencies, Aptos (quotation APT), continued its feverish search for short-term highs. As of 13:30 PM ET, this Layer 1 blockchain project has seen its APT token soar 7,3% over the past 24 hours. This brings the token's two-day gains to more than 50%, far surpassing those of most of the top-100 tokens in this time frame.
Much of this movement appears to be related to excitement over the ability of this relatively new blockchain network to process transactions at the fastest rate in the cryptocurrency industry. For cryptocurrencies to go mainstream, it will be important for long-term investors to see results like this.
Interestingly, development appears to be growing on Aptos, with automated marketplace maker PancakeSwap choosing Aptos for a key implementation. In particular, a proposal that seems very likely to pass (99% of token holders voted in favour) aims to build this distribution on Aptos.
The origins of this cryptocurrency
Aptos is intriguing. Founded by the original Diem project team, Aptos is a new purpose-built blockchain that aims to become one of the fastest and most secure blockchains in the world. The fact that automated market maker PancakeSwap has shown so much interest in Aptos has prompted many in the cryptocurrency community to watch it closely.
Personally, I want to dive deeper into this considering the strong price action we have seen lately.
What could happen now
As most investors know, a few days of rising prices do not constitute a rally. Aptos is still down about 45% from its peak late last year following its launch. As a result, while this project is new and exciting, it is also likely that there has not been sufficient price discovery with respect to its token.
Therefore, I think this token deserves to be watched. The team behind Aptos is noteworthy and some high profile backers have taken this project from an idea to reality. Sadly, Sam Bankman-Fried was also involved in the initial funding of this project, which might cast some shade on it.
At the moment, I believe the best course of action for Aptos is to see if this rally is sustainable. So far, it appears that most of the volume remains bullish on this token in the near term. However, we have seen many short-term rallies blow up over the past year. At these levels, it seems that Aptos can really go both ways. It's a tough choice.
