APT has been surging since the start of the year, but some traders expect the rally to be short-lived.
Layer 1 blockchain Aptos’ token, which has been surging since the start of the year, broke an all-time high on Wednesday. The token, APT, reached $16.46 and is up 350% since Jan. 1, according to CoinDesk data.
APT was more recently changing hands at $16.22, a more than 25% gain over the past 24 hours.
The token’s rally has outsized recent moves from the two largest cryptocurrencies by market cap, bitcoin and ether. Bitcoin is up 30% in 2023 , while ether has gained 34%.
The funding rates for the token are still negative, however, suggesting traders are expecting the rally to be short-lived.
“If traders are willing to open short positions with highly negative funding rates, they must have belief the token will decline,” Christopher Newhouse, a crypto derivatives trader at crypto market maker GSR, said. “Despite the surge, this suggests shorts think the rally may have gone too far.”
Aptos was founded by two Ex-Meta employees and has garnered some scrutiny over its APT token distribution since launching mainnet in October.
Investors and the Aptos Foundation received almost half the one billion tokens issued.
As CoinDesk reported earlier in the week, non-fungible token markets on Aptos could have contributed to the growth.
Data from Aptos NFT marketplace Topaz shows collections such as Aptomingos and Aptos Monkeys attracted tens of thousands in trading volume on Monday. Trading volume for Aptomingos is up 250% over the last 24 hours, according to Topaz.
