Binance Explains Why Aptos ($APT) ‘Has Been Outperforming in the Last Couple of Weeks’

On Wednesday (25 January 2023), the research arm of Binance (the world’s largest crypto exchange by trading volume) explained why in the past 2-3 weeks $APT (up 424% so far in 2023), the native utility and governance token of Web3-focused layer one (L1) blockchain Aptos has been doing so well.

The Aptos blockchain is being developed by a startup named Aptos Labs, which was founded by Mo Shaikh and Avery Ching. In its white paper, Aptos is described as “a safe, scalable, and upgradeable Web3 infrastructure”.

The white paper goes on to say that Aptos “offers new and novel innovations in consensus, smart contract design, system security, performance, and decentralization”:

  • “First, the Aptos blockchain natively integrates and internally uses the Move language for fast and secure transaction execution. The Move prover, a formal verifier for smart contracts written in the Move language, provides additional safeguards for contract invariants and behavior. This focus on security allows developers to better protect their software from malicious entities.
  • “Second, the Aptos data model enables flexible key management and hybrid custodial options. This, alongside transaction transparency prior to signing and practical light client protocols, provides a safer and more trustworthy user experience.
  • “Third, to achieve high throughput and low latency, the Aptos blockchain leverages a pipelined and modular approach for the key stages of transaction processing. Specifically, transaction dissemination, block metadata ordering, parallel transaction execution, batch storage, and ledger certification all operate concurrently. This approach fully leverages all available physical resources, improves hardware efficiency, and enables highly parallel execution.
  • “Fourth, unlike other parallel execution engines that break transaction atomicity by requiring upfront knowledge of the data to be read and written, the Aptos blockchain does not put such limitations on developers. It can efficiently support atomicity with arbitrarily complex transactions, enabling higher throughput and lower latency for real-world applications and simplifying development.
  • “Fifth, the Aptos modular architecture design supports client flexibility and optimizes for frequent and instant upgrades. Moreover, to rapidly deploy new technology innovations and support new web3 use cases, the Aptos blockchain provides embedded on-chain change management protocols.
  • “Finally, the Aptos blockchain is experimenting with future initiatives to scale beyond individual validator performance: its modular design and parallel execution engine support internal sharding of a validator and homogeneous state sharding provides the potential for horizontal throughput scalability without adding additional complexity for node operators.“

On 12 October 2022, the Aptos mainnet went live:

According to Binance Research, currently, $APT token is used for paying network fees, for validator staking, and for governance.

Since the start of the year, $APT has gone from $3.46 to $18.13, which is a gain of 424% (vs USD), with most of the gains coming since 9 January 2023, which is when Bitcoin started rallying.

Anyway, yesterday, Binance Research offered some explanations for the $APT token’s highly impressive performance since 9 January 2023:

“The $APT price chart shows the coin stuck around the US$3-4 mark for the first few months of its launch, until Jan 9th when price started moving from US$4 to over US$15 where it sits now. This represents a ~275% move in around two weeks. Why?

“Firstly, #Aptos hosted their first #AptosMoveMonday of 2023 on Jan 9th, roughly coinciding with the upward move in the price of $APT. Co-founders @moshaikhs and @AveryChing actively answered a number of questions and discussed many upcoming developments across the session.

“Mo and Avery announced significant upcoming community engagement, including the #AptosWorldTour, various conferences and developer meet-ups. They also discussed expected 2023 developments with #Aptos…

“Aptos #NFTs have also started to see increases in both floor price and trading volume as NFT investors start accumulating them to become early adopters and take advantage of potential flipping opportunities. @TopazMarket data is encouraging and illustrates these increases.

“Additionally, on Jan 20th, #Binance announced the opening of two new liquidity pools for Aptos, with $APT / #BTC and $APT / $USDT. @CoinMarketCap data shows that this (at least partially!) helped drive price (up ~56%) and trading volume (up 147% on a 5-day average) for $APT.“

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