- Market capitalization of stablecoins on the Aptos network hit an all-time high of $789M
- Hike followed the launch of USDC on the Aptos mainnet
Aptos (APT) has been under bearish pressure lately after recording a 7% drop in just seven days. However, at press time, APT seemed to be defying these bearish trends after gaining by 3% to trade at $7.84 on the charts.
One of the factors that could be influencing its press time momentum could be surging stablecoin inflows to the network.
Stablecoin market cap on Aptos approaches $800M
According to DeFiLlama, the total market capitalization of stablecoins on the Aptos network has climbed to an all-time high of $789.3 million. In January alone, this metric rose by more than 25% – A sign of rising network usage.
(Source: DeFiLlama)
A spike in stablecoin inflows usually indicates that traders are moving their funds to the network for activities such as trading, lending, or staking. This could boost the value of APT.
The network could also see more inflows after USDC issuer Circle announced that its stablecoin had launched on Aptos. According to Circle, this launch will empower users and developers on the network.
Despite the development, however, the DeFi Total Value Locked (TVL) on Aptos dropped to $1.5 billion from a record high of $2.14 billion recorded in mid-December.
Can rising network activity trigger a bullish reversal?
At the time of writing, Aptos was attempting a rebound after the gains seen in the last 24 hours. However, a death cross had appeared where the 50-day Exponential Moving Average (EMA) crossed below the 200-day EMA – Indicating that bears remained in control.
(Source: Tradingview)
The volume histogram bars over the last three days revealed a surge in buying pressure. At the same time, the Chaikin Money Flow (CMF) was in negative territory- An indication that the current buying activity may not be enough to overcome selling pressure. This could lead to a weak uptrend.
Traders should watch out for a crossover of the CMF to the positive zone, which could precede a strong rally. At the same time, a strong resistance zone lay at $8.47, with a breach of this level also set to drive a bullish reversal.
Long/short ratio hits a monthly high
Traders seem to be anticipating upcoming gains for APT due to a gradual hike in the long/short ratio. At press time, this ratio stood at 1.06 – Marking its highest level in one month.
(Source: Coinglass)
With 51% of traders going long on APT, it is a sign of conviction that the altcoin could defy the prevailing bearish trend and rally.
