- Aptos’ latest move aims to facilitate network activity via Bitcoin.
- APT’s strong recovery makes August more likely to end in the green.
Aptos has been busy expanding its DeFi ecosystem to leverage more organic growth. In fact, its latest announcement highlights its plans to leverage more opportunities through Bitcoin.
Aptos announced that Bitcoin holders can now connect their BTC to the blockchain thanks to a new collaboration with Echo Protocol. This collaboration will allow Echo to be launched on Aptos. Thanks to this development, Bitcoin holders will be able to exchange their BTC for aBTC, which can then be used for yield farming.
The potential impact of this development is that it could drive network activity on the Aptos blockchain. Other networks, such as Solana, have been driving network activity by offering high yields in DeFi.
The Aptos network has seen a surge in activity so far this year, as evidenced by its TVL growth over the past 12 months, which has since soared from under $100 million to $407 million. This surge has been accompanied by an increase in on-chain volume.
Source: DeFiLlama
Aptos’ daily on-chain volume has remained stable at over $30 million so far this month. For comparison, the network had an average daily on-chain volume of less than $1 million in August 2023.
APT is scheduled to close green in August.
Aptos’ native cryptocurrency APT has been on a bullish recovery trend since August 5. The recovery has increased the chances of APT closing the month above its opening price ($6.41). However, the cryptocurrency has entered a rebound early this week, putting it in danger of a red flag in August.
However, the price action of APT has returned to the $7.25 level, up 6.25% in the last 24 hours. This is most likely a reaction to the news of the collaboration with Echo Protocol. This means that the cryptocurrency is once again trading above its August opening price.
Source: DeFiLlama
On the chart, the RSI indicator for APT is above the mid-level, confirming that the current bullish momentum is still strong. This is probably why it was able to bounce back so quickly. It also highlights the possibility that APT will continue its rally, and if it does, it will end August in the green if it maintains its momentum until the end of the month.
Zooming in, we see that APT is still trading at a discount of over 60% from its current YTD high. This suggests that the cryptocurrency is still oversold in a wider range. This is a view that could further strengthen the bullish outlook on the chart.