Is the brand new Aptos (APT) Layer-1 cryptocurrency a ‘Solana Killer’ for real?

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Aptos Layer-1 Cryptocurrency

NFT Solana Spaces at Hudson Yards, New York
Preface by Silke Brand | Former Meta employees have launched Aptos to mainnet on October 12th 2022. The team behind Facebook’s failed stablecoin crypto project “Diem” has developed the Layer-1 “proof-of-stake” model blockchain network for the last four years. Its CTO (Chief Technology Officer) Avery Ching says it is a “killer” to those multi-functional altcoins already on the market as “current blockchains are just not as reliable as existing financial rails, we’ve seen issues of downtime and outages that last for hours”. He is therefore clearly referrring to Solanas outages. Aptos uses a programming language called Move, which has been “natively integrated for safe asset management as well as fast and secure transaction execution.” and makes use of smart contracts as well. They also stated in an announcement on October18th that “Our core design principle is to focus on developer and user experience. Prioritizing a simple and relatable experience for all is the only way web3 can reach the billions of people that are online today”.

Aptos claims that its transactions per second (TPS) can reach over 100,000. Compared with the 30 TPS from Ethereum after the merge and the 300 TPS from Solana as shown in practice so far this would be an absolute peak number. Recent news show however that Solana made a 24.000 TPS on September 22nd. Solana claims in its WhitePaper on page 30 that its peak could be 710.000 TPS – however a more realistic goal more being around 50.000 TPS.

Aptos features the mechanism of “parallel execution” that bundles transactions which is said to enable this high speed. Technically interested readers can study Aptos detailed white paper. Time will show if this TPS is realistic and what the tokenomics and emissions schedule will be as these were not transparent at time of the launch. Some critics raised their voices – among others for example Paradigm Engineer #420 on Twitter. Today on November 1st 2022 the TPS rates at 11,9 TPS on Aptos Explorer.

Read below about the observation by The Daily HODL staff why Guy from CoinBureau sees Aptos (APT) as overpriced.

Coin Bureau YouTube channel host Guy believes that the 50th-largest crypto asset by market cap (on November 1st 2022) is overpriced.

Guy tells his 2.16 million YouTube subscribers in his video that “Solana Killer” Aptos (APT) appears to be “grossly overvalued.” However, the fundamentals of the crypto asset that was launched on October 19th are appealing, according to the Coin Bureau host. While noting that wallet addresses are not necessarily a reflection of user numbers, Guy says that Aptos is enjoying “serious adoption.”

“In terms of price action, there isn’t much I can say about APT just yet because it’s a brand new cryptocurrency. Even so, at first glance, Aptos looks grossly overvalued – a market cap of over $1 billion and a fully diluted market cap of over $9 billion. Upon closer examination, however, it does look like some fundamentals are starting to form. According to the Aptos explorer, there are over 1.7 million wallet addresses…To put things into perspective, Cardano has around 2.3 million wallet addresses, according to the AdaStat explorer. This means that Aptos is on track to surpass Cardano by number of users within two weeks of launch. Cardano’s mainnet went live over five years ago. That is some serious adoption.”

Aptos is trading at $8.17 on November 1st 2022, down by a little over 40% from its all-time high of $13.73 reached on October 19th – its first day of trading.

Guy also says that Aptos has the technical capacity to achieve its ambitious roadmap in the coming weeks and months.

“Aptos has lots of milestones ahead of it…The ‘too long; didn’t read’ is that Aptos wants to scale to support billions of users and every use case you can think of, just like every other new crypto. The difference is that Aptos actually has the tech to do it.”

Featured Image: Shutterstock/solarseven

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