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Aptos (APT) is facing a temporary existential threat as millions of the tokens are set to unlock, diluting its circulating supply. According to data from crypto analytics provider Lookonchain, a total of 24.84 million APT worth as much as $181.35 million will be unlocked Nov. 12, a move based on the protocol’s predefined vesting schedule.
Per the insights shared by Lookonchain, a total of 11.88 million APT or $87.04 million is designated to be unlocked and distributed to core contributors on the Aptos network. A total of 8.42 million APT or $61.75 million is poised to go to investors, while the community and Aptos Foundation will get 3.21 million APT ($23.53 million) and 1.33 million APT ($9.77 million), respectively.
The prospect that these unlocked tokens might be liquidated by the designated recipients is dampening expectations. As such, it is depriving Aptos from participating in the ongoing altcoin rally. At a time when cryptocurrencies like FTX Token (FTT) and Celsius (CEL) are on a major bullish rampage, APT has dropped 1.17% to $7.34, with bears threatening to pare off the 6.52% accumulated in the past week.
Should APT holders be worried?
Notably, the initial assumption is that a sell-off will succeed in the unlock tomorrow, but according to Lookonchain’s analysis, the impact might not be well felt. Besides the fact that the tokens billed for release account for just 9.96% of the current circulating supply, the bulk of this supply, or 83%, is staked.
This implies that the supply crunch is still in effect and the unlock and potential sell-off might not impact APT as much. The fact that Aptos maintains a bullish price outlook shows it is historically an altcoin with the right resilience in the face of harsh market conditions.
Aptos’ latest partnership with tech giants like Microsoft also forms a positive basis for it to rebound from its current sell-off in the near future.