Altcoins
This Altcoin Gem Will Overtake Solana, Arthur Hayes Predicts
Arthur Hayes, co-founder of crypto exchange BitMEX, has predicted that the Aptos (APT) blockchain is poised to surpass Solana (SOL) in importance and utility in the race to be the second largest layer 1 (L1) blockchain behind Ethereum in the next two to three years . Hayes shared his thoughts in a detailed interview with macro analyst Raoul Pal.
Aptos could overtake Solana
Hayes indicated that the potential for Aptos to surpass Solana and become the second L1 protocol after Ethereum is significant, but did not delve into the specific catalysts behind his assertion during the conversation. He promised a more detailed statement of his views in September.
The emergence of Solana in March 2020 marked a significant milestone in the blockchain landscape. Solana was touted as a solution to several of Ethereum’s limitations, including scalability, speed, and cost-effectiveness. These attributes were crucial as the Ethereum network struggled with severe congestion issues during the DeFi boom, prompting a search for viable alternatives.
Solana’s rise in the cryptographic hierarchy has notably accelerated with the launch of memecoins BONK in December 2022 and dog hat (WIF) in November 2023, two pivotal moments that marked the first major departure of memecoin activities from the Ethereum ecosystem. The two memecoins not only increased the visibility of Solana, but also attracted a range of memecoins and innovative DeFi platforms, attracted by lower transaction costs.
However, like Ethereum, Solana faced its own challenges earlier this year with network congestion as its popularity grew, demonstrating the ongoing scalability issues within current blockchain infrastructures.
Aptos, on the other hand, has maintained a zero downtime record since its inception, positioning it as a robust and reliable alternative within the digital currency ecosystem. Its foundation is based on the new smart contract programming language “Move”, developed by engineers formerly associated with Meta Platforms Inc’s Diem project.
Although Diem was ultimately abandoned, expertise and technological advancements were redirected to Aptos, highlighting its suitability for commercial use and potential for widespread adoption. However, Aptos has not yet been widely adapted. Blockchain currently has neither a popular DeFi ecosystem nor major memecoins.
APT Price Analysis
This is reflected in Aptos’ market performance. Currently, Aptos (APT) is down 63% from its January 2023 high of $20.39, trading at $7.50 after seeing a significant downtrend from its March high of $19.48. The decline took APT below the 0.236 Fibonacci retracement at $8.39.
The cryptocurrency’s trajectory has also seen it weaken below the 50-week exponential moving average (EMA), now at $9.25, which has become a major resistance level. APT faced multiple rejections at this threshold, highlighting its importance for any potential reversal of bullish momentum. Moreover, it is essential to maintain a position above the lowest price of the year at $7.39 to avoid further losses.
Featured image from YouTube, chart from TradingView.com