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Aptos Pivots Tokenomics Towards Performance-Driven Deflation

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APT All-Time Chart - CoinGecko

The Layer 1 network proposes token buybacks, raising gas fees by 10x, and reducing the staking rewards rate.

Layer 1 blockchain Aptos is proposing a major shift in its tokenomics, intended to reward long-term stakers and use transaction fees to fund token buybacks, as the APT token continues to hit new lows.

The team posted the update on X today, stating that “The Aptos network is transitioning to performance-driven tokenomics designed to align supply mechanics with network utilization.”

Through this update, Aptos aims to transition from its high-inflation, subsidy-based model to a deflationary, revenue-driven supply. The update proposes a hard cap of 2.1 billion APT, and the Aptos Foundation will permanently lock 210 million APT, worth $180 million, and use staking rewards to support network operations rather than token sales.

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The update also calls for a tenfold increase in gas fees, claiming that even after this increase, network fees would “still be the lowest in the world at around $0.00014.” The increased fees are expected to boost the amount of APT purchased and burned through the programmatic buyback program.

Aptos also proposes to drop the staking reward rate by 50% from 5.19% to 2.6%. This decrease is expected to be paired with a future governance proposal that would offer higher reward rates to users who commit to longer staking terms, whereas short-term stakers would be subject to the 2.6% rate.

APT has had a rough year, falling 87% from 6.31 to $0.86 since February 2025, and 95% from its all-time high of $19.92 in 2023.

APT All-Time Chart - CoinGecko
APT All-Time Chart – CoinGecko

Despite the token’s poor performance, Aptos is DeFi’s tenth-largest blockchain by stablecoin market capitalization, with $1.4 billion in total value, and is ranked eleventh by stablecoin transaction volume, with $587 billion, according to Artemis Terminal.

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Crypto World

Bitcoin $60K Retest Odds Rise As Bearish Options, ETF Outflows Show Fear

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Bitcoin $60K Retest Odds Rise As Bearish Options, ETF Outflows Show Fear

Key takeaways:

  • Professional traders are paying a 13% premium for downside protection as Bitcoin struggles to maintain support above $66,000.

  • While stocks and gold remain strong, $910 million in Bitcoin ETF outflows suggest that institutional investor caution is rising.

Bitcoin (BTC) price entered a downward spiral after rejecting near $71,000 on Sunday. Despite successfully defending the $66,000 level throughout the week, options markets reflect growing fear as professional traders avoid downside price exposure. 

Even with relative strength in the stock market and gold prices, traders seem to be effectively betting on a $60,000 retest rather than overreacting to Bitcoin price dips.

BTC two-month options delta skew (put-call) at Deribit. Source: laevitas.ch

Bitcoin put (sell) options traded at a 13% premium relative to call (buy) instruments on Thursday. Under neutral conditions, the delta skew metric typically ranges between -6% and +6%, indicating balanced demand for upside and downside strategies. The fact that these levels have been sustained over the past four weeks shows that professional sentiment is leaning heavily toward caution.

Top BTC options strategies at Derbit past 48h, USD. Source: Laevitas.ch

This bearish bias is clear in the neutral-to-bearish positioning seen in Bitcoin options. According to Laevitas data, the bear diagonal spread, short straddle and short risk reversal were the most traded strategies on the Deribit exchange over the past 48 hours.

The first lowers the cost of the bearish bet because the short-term option loses value faster, while the second maximizes profit if Bitcoin price barely moves. The short risk reversal, on the other hand, generates profit from a downward move with little to no upfront cost, but it carries unlimited risk if the price spikes.

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Weak institutional demand for Bitcoin ETFs fuels discontent

To better gauge the risk appetite of traders, analysts often look at stablecoin demand in China. When investors rush to exit the cryptocurrency market, this indicator usually drops below parity.

USD stablecoin premium/discount relative to USD/CNY rate. Source: OKX

Under neutral conditions, stablecoins should trade at a 0.5% to 1% premium relative to the US dollar/Yuan exchange rate. This premium compensates for the high costs of traditional FX conversion, remittance fees and the regulatory friction caused by China’s capital controls. The current 0.2% discount suggests moderate outflows, though this is an improvement from the 1.4% discount seen on Monday.

Part of the current discontent among traders can be explained by the lackluster flows in Bitcoin exchange-traded funds (ETFs), which serve as a proxy for institutional demand. 

Related: Bitcoin ETFs still sit on $53B in net inflows despite recent outflows–Bloomberg

US-listed Bitcoin ETFs daily net flows, USD. Source: Farside Investors

US-listed Bitcoin ETFs have seen $910 million in total outflows since Feb. 11, which likely caught bulls off balance, especially as Bitcoin traded 47% below its all-time high while gold prices hovered near $5,000, up 15% in just two months. Similarly, the S&P 500 index sat only 2% below its own all-time high, indicating that this risk-aversion is largely restricted to the cryptocurrency sector.

While Bitcoin options signal a fear of further downside, traders are likely staying extremely cautious until a clear rationale for the crash to $60,200 on Feb. 6 finally emerges.

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