Altcoins
This Altcoin Gem Will Overtake Solana, Arthur Hayes Predicts
Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, did just that expected that the Aptos (APT) blockchain is poised to surpass Solana (SOL) in importance and utility in the race for the second largest Layer 1 (L1) blockchain behind Ethereum within the next two to three years. Hayes expressed his thoughts during a detailed interview with macro analyst Raoul Pal.
Aptos could overtake Solana
Hayes indicated that the potential for Aptos to outperform Solana and become the second-layer L1 protocol after Ethereum is significant, but did not elaborate on the specific catalysts behind his claim during the conversation. He promised a more detailed exposition of his views in September.
The emergence of Solana in March 2020 marked a significant milestone in the blockchain landscape. Solana has been heralded as a solution to several limitations of Ethereum, particularly regarding scalability, speed, and cost efficiency. These attributes have been crucial as the Ethereum network has grappled with severe congestion issues during the DeFi boom, prompting the search for viable alternatives.
Solana’s rise in the cryptocurrency hierarchy was significantly accelerated with the launch of memecoin BONK in December 2022 and dogwifhat (WIF) in November 2023, both pivotal moments that marked the first major departure of memecoin activity from the Ethereum ecosystem. Both memecoins not only increased Solana’s visibility, but also attracted a number of innovative memecoins and DeFi platforms, attracted by lower transaction costs.
However, like Ethereum, Solana also faced its own challenges earlier this year network congestion as its popularity increases, demonstrating persistent scalability issues within current blockchain infrastructures.
Aptos, on the other hand, has maintained a record of zero downtime since its inception, positioning itself as a solid and reliable alternative within the digital currency ecosystem. Its foundation rests on the new smart contract programming language “Move,” developed by engineers previously associated with Meta Platforms Inc.’s Diem project.
Although Diem was ultimately shelved, expertise and technological advances were redirected to Aptos, underscoring its suitability for commercial use and potential for widespread adoption. However, Aptos has not yet been widely adapted. The blockchain currently has neither a popular DeFi ecosystem nor any major memecoins.
APT Price Analysis
This is reflected in Aptos’ market performance. Currently, Aptos (APT) has retreated 63% from the January 2023 high of $20.39, trading at $7.50 after trending significantly down from the March peak of $19.48. The decline took the APT below the 0.236 Fibonacci retracement to $8.39.
The cryptocurrency’s trajectory has also seen it falter below the 50-week exponential moving average (EMA), now at $9.25, which has emerged as a major resistance level. APT has faced numerous rejections at this threshold, underscoring its importance to any potential reversal of bullish momentum. Furthermore, maintaining a position above the year’s lowest price of $7.39 is crucial to avoid further losses.
Featured image from YouTube, chart from TradingView.com