Arthur Hayes, the founder of the crypto exchange BitMEX, predicted that the blockchain Aptos (APT) is ready to surpass Solana (SOL) in prominence and ease of use in the race for the second largest blockchain (L1) blockchain after Ethereum in the next period. two to three years. Hayes shared his thoughts during a detailed interview with senior commentator Raoul Pal.
Aptos can surpass Solana
Hayes indicated that the possibility of Aptos being able to surpass Solana and rise as the second L1 protocol after Ethereum is important, but he did not examine the specific motives behind his assertion during the interview. He promised a detailed disclosure of his views in September.
The emergence of Solana in March 2020 marked an important milestone in the blockchain landscape. Solana has been heralded as a solution to several of Ethereum’s limitations, particularly regarding stability, speed, and cost efficiency. These qualities were important as the Ethereum network faced severe congestion issues during the DeFi boom, prompting the need for efficient alternatives.
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Solana’s rise in the crypto ranks was accelerated significantly with the launch of memecoins BONK in December 2022 and dogwifhat (WIF) in November 2023, both milestones that marked the first major movement of memecoin operations into the Ethereum ecosystem. Both memecoins not only boost Solana’s visibility but also attract an array of memecoins and innovative DeFi platforms, driven by low transaction costs.
However, similar to Ethereum, Solana faced its own challenges earlier this year with network congestion as its popularity increased, indicating ongoing scalability issues within the current blockchain infrastructure.
Aptos, on the other hand, has maintained a record of zero downtime since its inception, positioning it as a solid and reliable alternative within the digital currency ecosystem. Its foundation is based on the new knowledge of the smart contract system “Move,” developed by developers who were associated with Meta Platforms Inc.’s Diem project.
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Although Diem was eventually shelved, expertise and technological development was redirected to Aptos, emphasizing its suitability for commercial use and potential for widespread adoption. However, Aptos has not been extensively modified. The blockchain currently does not have a popular DeFi ecosystem or any major memecoins.
APT Price Analysis
This is reflected in the market performance of Aptos. Currently, Aptos (APT), down 63% from its January 2023 high of $20.39, is trading at $7.50 after experiencing a significant decline from its March peak of $19.48. The decline took APT below the 0.236 Fibonacci retracement at $8.39.
The cryptocurrency’s trajectory has also seen it fluctuate below the 50-week Exponential Moving Average (EMA), now at $9.25, which has emerged as a major resistance level. The APT has faced multiple rejections at this level, underscoring its importance for any potential reversal in bullish momentum. Furthermore, maintaining a position above the annual low price of $7.39 is important to avoid further losses.
Featured image from YouTube, chart from TradingView.com
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