Aptos price crashed hard even as the total value locked (TVL) in its ecosystem held relatively steady. APT plunged to a low of $3.20, which was the lowest level since the coin went public a few months ago. It has crashed by more than 68% from its highest level on record.
Why is APT crashing?
Aptos is one of the newest smart contract platform in the industry. The network was backed by leading players nin the industry like Andreesen Horowitz, Binance, and even FTX Ventures.
Aptos is similar to other smart chain networks like Solana and Cardano. The only major difference is that its technology provides it with a significant throughput, which helps it handle thousands of transactions per second. It is even faster than popular networks like Visa and Mastercard.
Aptos price has slumped in the past few weeks because of its affiliation to FTX and Binance. FTX collapsed in November after concerns about its FTT holdings increased. Now, there are concerns that Binance will be the next knife to fall in the crypto industry. Binance has seen outflows worth over $10 billion in the past few weeks.
Other FTX-backed tokens like Solana, Serum’s SRM, and Bonfida’s FIDA have also crashed hard in the past few weeks. The theory is that FTX’s administrators will start dumping some of its holdings in a bid to recover user funds.
Aptos TVL rises
Aptos price collapsed even as the total value locked in its DeFi ecosystem rose. Data published by DeFi Llama shows that the TVL jumped to over $56 million, despite the collapse of cryptocurrencies. This is a remarkable experience considering that Cardano has a TVL of less than $60 million. Cardano has been around for more than 6 years now.
This trend was helped by PancakeSwap whose TVL has jumped by more than 125% in the past 30 days to $25 million. It now has a market dominance of over 44% in the platform. Other smaller DeFi protocols in the ecosystem like LiquidSwap, Tortuga, AUX Exchange, and Aries Markets have lost funds.
Therefore, APT price likely dropped because the main driver for its ecosystem was just PancakeSwap.
