What to expect as Aptos network activity falls off a cliff

• The demand for Aptos has declined in the last month.
• APT’s open interest has seen a significant drop since the beginning of November.

On-chain data has revealed a steady decline in Aptos’ [APT] network activity over the past month.

Data from Artemis showed that key ecosystem metrics, including total transactions, active addresses, and transaction volume, have all trended downward in the last 30 days. 

According to the data provider, as of 16th November, the number of unique wallet addresses that completed at least one transaction on the Layer 1 (L1) network totaled 51,220.

This represented a 92% decline from the 613,890 daily active addresses Aptos recorded a month ago.

Source: Artemis

Due to the decline in daily active addresses on the chain, the daily count of transactions on Aptos fell as well. During the period under review, the total number of daily transactions registered on-chain plummeted by 84%.

Further, Aptos’ network’s total value locked (TVL), which recently soared to an all-time high, has witnessed a decline in the past few days. Data from DefiLlama showed that on 7th November, the blockchain’s TVL rose to $77 million.

However, it initiated a decline a day after, to be pegged under $65 million at press time.

Between 7th November and press time, Aptos’ TVL has dropped by 17%.

APT not spared from the decline

The overall decline in demand for Aptos in the last month has also impacted the performance of its native coin APT.

While its price took advantage of the general market rally to post a double-digit gain in the last month, it has continued to see a steady drop in accumulation. 

The coin’s Relative Strength Index (RSI) observed on a daily chart was spotted at 48.35 at press time. Stationed below the center line and positioned in a downtrend, the RSI showed that the volume of APT distribution among the coin’s daily traders exceeded its accumulation.

Likewise, its Chaikin Money Flow (CMF), now approaching the negative territory, has steadily declined in the past week. The CMF fall signaled a persistent decrease in the liquidity present in the APT spot market.

Source: APT/USDT on TradingView

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In the coin’s futures market, the open interest across crypto exchanges fell to a 30-day low on 17th November. It peaked at $129 million at the beginning of the month, after which it began to decline. 

This showed that as demand for the alt craters, futures market participants have increasingly exited their trade positions. 

Source: Coinglass