No cryptocurrency or token has risen more than Aptos in the last day or week, according to CoinGecko.
Aptos blockchain native coin, APT, has more than doubled its price in the past seven days and is up 47% to $18.46 in the last day alone. Since the beginning of the year, Aptos shares have risen by 350%. Why?
It’s hard to pinpoint the exact cause, but data shows that about half of APT’s $2 billion trading volume over the past day comes from the South Korean won trading pair on Singapore’s UpBit exchange, according to CoinGecko. At the time of writing, the APT price on UpBit is $18.63.
This is almost $0.50 more than it is traded on Binance and most other exchanges and is a sign that at least some of the activity is in arbitrage trades. Simply put, arbitrage traders make money on price discrepancies. They buy at the lowest price available and sell at the highest price they can get.
South Korean exchanges list crypto assets at higher prices than their global counterparts so often that the difference has been dubbed the “Kimchi premium.” Just last year, the Seoul Central District Prosecutor’s Office launched an investigation into illegal money transfers worth 2 billion Korean won received by arbitrage traders who took advantage of this.
It’s also worth noting that while Aptos still only ranks as the 20th largest DeFi ecosystem, according to DeFi Llama, it has grown significantly over the last month. DeFi volume on Aptos went from $14 million last month to $51 million in January, and the month isn’t even over yet.
Another 10% of APT volume over the past day came from the Binance APT and Binance USD (BUSD) trading pair. Binance, the world’s largest cryptocurrency exchange by volume, also recently introduced two APT liquidity pools, which now account for another 18% of APT’s trading volume.
Liquidity pools facilitate peer-to-peer trading of crypto assets. Users are interested in “pooling” or depositing their tokens so that they can be exchanged with other users. They are required for decentralized exchanges like Uniswap and Curve to work. But centralized exchanges like Binance use them too.
On January 20, the Binance Liquid Swap platform introduced its APT/Tether and APT/Bitcoin liquidity pools. The platform rewards users with BNB, the exchange’s utility token, for depositing funds into pools.
At the time of writing, Binance promises a return of 92.42% on APT/USDT and 99.49% on APT/BTC liquidity pool deposits. Of these, users will receive 0.71% and 1.07% BNB rewards, respectively, paid every hour.
Aptos has consistently outperformed the market since the start of the year. But it all started badly when main network launched in October.
The project received a lot of backlash for not releasing its tokenomics before it did. Criticism came when the blockchain, which had promised speeds of up to 150,000 transactions per second, showed a speed of 4 transactions per second after its big debut.
At the time, Aptos co-founder Mo Sheikh said: on twitter it was a sign that “the network is idle before projects go online.”
Aptos supporters include many of the venture capital firms that have become mainstays of the industry: Andreesen Horowitz, Multicoin Capital, Jump Crypto, Tiger Global Management, Blocktower Capital, and Coinbase Ventures. And ahead of its launch, the project closed a $200 million strategic round and a $150 million Series A round.
The list also includes two companies that have since filed for bankruptcy: hedge fund Three Arrows Capital and FTX Ventures, the venture arm of Sam Bankman-Freed’s crypto empire.
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