# [NFA]Aptos Labs-$APT Analysis By [3HOUSE](https://paragraph.com/@3house) · 2023-04-14 --- **Author: 3HOUSE user @0xBello** Fundamental overview -------------------- **Aptos** is a Layer 1 blockchain that operates on a Proof-of-Stake (PoS) consensus mechanism. It employs a unique smart contract programming language called Move, which is a Rust-based language developed independently by Diem blockchain engineers from Meta (previously known as Facebook). The main goal of Aptos is to bring about mainstream adoption of web3 and enable a DApp ecosystem that can tackle real-world user issues. With **parallel execution, the PoS blockchain** has the potential to process over 150,000 transactions per second (tps). Aptos managed to raise $200 million in a seed round in March 2022. The funding round was spearheaded by venture capital firm Andreessen Horowitz (a16z), and also featured participation from Tiger Global and Multicoin Capital, among other significant crypto industry players. The Aptos team asserts that their network has a transaction throughput capability of over 150,000 tps, which is significantly higher than **Ethereum's mainnet tps of around 12 to 15.** This remarkable transaction processing capacity is made possible by Aptos's parallel execution engine, Block-STM, which operates on a byzantine fault-tolerant (BFT) PoS consensus mechanism. In contrast to most blockchains, where transactions are processed sequentially, Aptos processes all transactions simultaneously and then verifies them afterward. This approach eliminates the possibility of a single failed transaction or high network demand clogging up the entire chain. In the event of a failed transaction, Aptos uses its software transactional memory libraries to detect and manage conflicts, either by aborting or re-executing the transaction. Aptos was developed using **Move, a novel smart contract programming language that claims to provide several advantages over Solidity, the EVM-based programming language.** These advantages include easily verifiable blockchain commands, the ability to modify private keys, and a modular design. **APT is the official currency of the Aptos blockchain**, with an initial total supply of 1 billion tokens. As of now, the circulating supply stands at 130 million APT. The token distribution breakdown is as follows: **Community (51.02%); Core Contributors (19.00%); Foundation (16.50%); and Investors (13.48%).** Within the Community allocation, around 80% of the tokens are held by the Aptos Foundation, while the remaining 20% are held by Aptos Labs. These tokens will be utilized to support community growth and Aptos Foundation initiatives, with the remainder of the tokens unlocked monthly over the next ten years. Aptos uses two consensus protocols – Proof-of-Stake and AptosBFT. AptosBFT is quite similar to DiemBFT, originally developed for Diem. “BFT '' means ‘Byzantine Fault-Tolerant’ and a network is said to be Byzantine fault-tolerant if it can continue to operate normally even if some of its members go offline or turn malicious. Technical analysis ------------------ As the world of finance barely made the bank failures crisis escape media’s talk, BTC and the cryptocurrencies held stronger than investors imagined. In the past weeks cryptos were under pressure but let’s take a look at how it performed. ![](https://storage.googleapis.com/papyrus_images/1540bb02f412c0e2788b76b5c067e42f9222b95896ad88e2469ad43169c8442e.png) Bitcoin kept up strongly through all the FUD and outside market noise being in a long consolidation and not letting price fall down. It created a scalping trader’s paradise for almost a month, just under the 30k resistance before breaking through currently sitting above it. Previous push to the upside took a lot of short side liquidity leaving millions of dollars under the previous range low. As we know, market loves having flow of money so it follows liquidity like a magnet. Last 2 days we’ve seen three buying pressure attempts failing but price is still not going down as it should. This can indicate one more possible target for the price before a corrective move to the downside. ![](https://storage.googleapis.com/papyrus_images/3f9ab5bc241a59668bf0fcf3655961a8bf736cdb7353985c1bd9a15314e1b997.jpg) ![](https://storage.googleapis.com/papyrus_images/7d64b2bd6c47bed83de74ee94e9742dce1fb451199496349f8899032dd85b8b1.jpg) These two heatmaps help us locate short and long liquidations and as we can see, a lot have happen. Sellside still has 31.5k liquidity wall that we can take out before heading to the vast amount of money left in the buying side. ![](https://storage.googleapis.com/papyrus_images/56e7e5df33b7126f5cb4577beb3d9a68fd7dc662be6a98dcd6e0fd0a4c2f3770.png) Now we know the current situation in the overall market, we can switch our focus to **the main watcher,** APT. It has been trading in a downside trend for the previous 80 days but showed strength in the last week as Bitcoin started consolidating. Crypto twitter is all filled with titles like “THE NEW BULL RUN”, “FED PIVOT” and so on, which usually means the opposite, but this doesn’t mean we can’t take advantage of the short term pump. Signs of **buying pressure** began to appear in APT price as open interest spiked 30% in last days. Open interest is just a metric that tells you the number of open derivatives contracts, the number of active trade contracts build up the OI number. With this we can observe new longs being opened and stacked for Aptos. Our best scenario in the moment would be a long with the entry **around 12.2$ mark,** opening our positions small and leaving room to dollar cost average if price goes down so we can achieve better R:R (Risk to Reward). The trade should be stopped in a loss if the **4 hour candle closes under the 10.85$** price or if **Bitcoin drops down for the corrective move aggressively before reaching the last sellside liquidity wall**, these two reasons would invalidate our setup. Price targets are the following: * **13.5$** - closing a small amount of the position to cover fees and put a hard stop loss to the entry so this way our trade becomes risk free * **14.55$ - taking 50%** off our position leaving the rest as long as Bitcoin supports our move and moving our stop loss to 14$. * **16.55$ -** taking 75% off from the remaining position leaving a tiny portion to run free as high as it goes. As a summary, you should keep in mind every invalidation rule we set and follow the trade plan with your own critical thinking process and not over position yourself. Risk management creates profitable traders, risking more than your account can lose is gambling. _‘The goal of a successful trader is to make the best trades. Money is secondary.’ Alexander Elder_ This is not financial advice, please trade at your own risk! ![](https://storage.googleapis.com/papyrus_images/1c14836ba8330bf392959d5bd8f327d42bfc1ea87c8d26bcabadaf15ff920e1e.png) --- *Originally published on [3HOUSE](https://paragraph.com/@3house/nfa-aptos-labs-apt-analysis)*