Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, foreseen that the Aptos (APT) blockchain is poised to overtake Solana (SOL) in prominence and utility in the race for the second largest Layer 1 (L1) blockchain behind Ethereum in the next two to three years. Hayes conveyed his thoughts during an in-depth interview with macro analyst Raoul Pal.
Aptos could overtake Solana
Hayes indicated that the potential for Aptos to surpass Solana and rise as the second-ranked L1 protocol after Ethereum is significant, but did not delve into 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 touted as a solution to several of Ethereum’s limitations, particularly with regards to scalability, speed, and cost efficiency. These attributes were crucial as the Ethereum network faced severe congestion issues during the DeFi boom, which led to the search for viable alternatives.
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Solana’s rise up the crypto hierarchy was notably accelerated with the launch of BONK memecoins in December 2022 and dog with hat (WIF) In November 2023, both pivotal moments marked the first major exit of memecoin activities from the Ethereum ecosystem. Both memecoins not only increased Solana’s visibility, but also attracted a variety of innovative memecoins and DeFi platforms, attracted by lower transaction costs.
However, similar to Ethereum, Solana faced its own challenges earlier in the year with Network Congestion as its popularity increased, demonstrating the persistent scalability issues in current blockchain infrastructures.
Aptos, on the other hand, has maintained a record of zero downtime since its inception, positioning it as a robust and reliable alternative within the digital currency ecosystem. Its foundation rests on the new “Move” smart contract programming language, developed by engineers previously associated with Meta Platforms Inc.’s Diem project.
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Although Diem was ultimately shelved, experience and technological advances were redirected to Aptos, emphasizing its suitability for commercial use and potential for widespread adoption. However, Aptos has not yet been widely adapted. Currently, the blockchain does not have a popular DeFi ecosystem or 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 experiencing a significant downtrend since 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 fall below the 50-week exponential moving average (EMA), now at $9.25, which has emerged as a key resistance level. APT has faced multiple rejections at this threshold, underlining its importance for any potential reversal to bullish momentum. Furthermore, maintaining a position above the lowest price of the year, of US$7.39, is essential to avoid further losses.
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Featured image from YouTube, chart from TradingView.com