Aptos (APT) price action has been trending downward over the past 18 months. In the past week alone, APT’s Total Value Locked (TVL) has fallen by about 43% as of the time of writing, and the decline shows no signs of slowing down.
Why is Aptos’ TVL crashing?
According to DefiLlama, the TVL index has declined over the past two months. In early June, it had about $280 million but had lost more than $100 million by the end of the month.
last week, Aptos TVL fell from $156 million to $100 million, equivalent to a decline of approximately 43%. Excluding active loans, dual accounts, staking, and liquid staking, the total TVL is $63 million.
One of the main factors behind last week’s sharp decline was Echo Protocol withdrawing a large amount of liquidity. your Bitcoin (BTC)-Bridge Focused on mobility chains, including Aptos, Echo’s exit was the most affected by APT.
This decrease was an indication of decreased user activity. It was supported by lower daily active addresses of around 40.5K. In addition, profits fell by 72% from $366,000 to $103,000. According to DefiLlama.
This decline may cause traders to withdraw APT, considering it less profitable and possibly affecting the security of the chain. It is worth noting that the decline in RWA TVL on Aptos should not be overlooked as it has fallen by 70% in the last 30 days.
Together, these factors led to capital flight from Aptos.
Is the APT price responsible for dregs He falls?
Furthermore, weak price performance played a role when measuring the maximum expected value in terms of the US dollar’s valuation. When the price of APT decreases, the value of TVL in USD also decreases.
At the time of writing, APT was falling in a trend channel after breaking out from a sideways range. This trend was reinforced by a decline in open interest (OI) to around $42 million.
Notably, the APT was trading above the middle level of the channel, a potential sign that the bulls may be gaining strength in the bearish zone.
Final summary
- Aptos’ TVL has crashed more than 43% in a week due to Echo Protocol withdrawing liquidity, poor RWA performance, and declining usage and profits.
- APT price was falling in a trend channel, with OI strengthening as traders were not interested in the token.
