Aptos’s 10% Rally Triggers ‘Short Squeeze’ Debate

Sahana Kiran
Aptos
Source – Aptos Foundation

In addition to the top ten digital assets, several others have been gaining attention in the market. Following the resurgence of Bitcoin Cash, Aptos [APT], often referred to as the ‘Solana killer,’ has been garnering significant activity. The asset experienced a substantial upward trend within the last 24 hours. At press time, APT is trading at $8.22, exhibiting a notable daily surge of 9.9%. This sudden surge pushed the asset’s popularity as well. According to data from LunarCrush, APT was among the top coins by network and market activity.

Also Read: Ethereum Could be a Layer-2 for Solana: Co-Founder

Why is Aptos soaring?

Aptos’s recent surge can be attributed to South Korean traders. In the first half of June, these traders specifically targeted heavily shorted tokens like Bitcoin Cash and Aptos with the intention of identifying the liquidation points of short sellers and triggering a short squeeze. This phenomenon typically occurs when the price of an asset rises, leading traders who had bet against its price to buy at a loss or undergo forced liquidation.

Coinglass data indicated that Aptos liquidations amounting to $1.50 million occurred within the past 24 hours. Among these liquidations, long liquidations accounted for only $488K, while a significant $1.02 million was attributed to short liquidations.

Also Read: Bitcoin Cash Is up by 113%: Why?

Highlighting Korean traders involvement, Andrew Kang, the co-founder of Mechanism Capital tweeted,

The recent price fluctuations hold significance, especially for those anticipating the impact of the upcoming token unlock on APT’s price in July. Set to occur on July 12, a total of 4.54 million APT tokens, representing 2.17% of the circulating supply, will be unlocked and become available. This event has garnered attention from market participants who are monitoring its potential influence on APT’s price.

Also Read: Korean Traders Pick XRP, Dogecoin Over Bitcoin, Ethereum in 2023