- Avalanche and Aptos are seen as next in line for ETF approval
- Both tokens have seen significant price drops in the past few days.
Anticipation surrounding the ETF approval and the ruling has boosted the prices of both BTC and ETH, but the price surge may not be limited to blue-chip coins.
In fact, Avalanche [AVAX] Aptos [APT] It is currently listed as a potential cryptocurrency to join the club if the company chooses to apply.
What’s next for Avalanche and Aptos?
According to data shared by GSR, if the Solana ETF application is approved, it is more likely that the Avalanche and Aptos ETFs will be approved.
GSR Survey It has become clear that regulators such as the SEC are open to a crypto spot ETF that meets certain criteria, which is a big change from the past few years.
Decentralization and potential investor demand are seen as key factors. A higher level of decentralization, i.e. a network not controlled by a single entity, is considered to favor ETF approval. Metrics such as the Nakamoto coefficient, staking requirements, and CCData governance rating can help evaluate this.
Among other cryptocurrencies, Avalanche and Aptos are more likely to gain ETF approval due to their relatively decentralized structures, according to GSR.
Even if the diversification score is high, an ETF is unlikely to come to fruition if there isn’t enough investor interest, so issuers will likely consider both factors when deciding which cryptocurrencies to include in their ETFs.
ETF approval will make Avalanche and Aptos more accessible to retail investors who may be hesitant to purchase cryptocurrencies directly on exchanges, which could significantly increase their user base and adoption.
However, at the time of writing, things were looking grim for both protocols: daily activity and transactions on both protocols have dropped significantly over the past few days. Additionally, total value locked (TVL) has fallen across the board, suggesting that protocols in the DeFi sector have not performed well.
Source: Artemis
What is the status of tokens?
The price movements of both these tokens have declined significantly over the past few months, showing signs of a bearish trend.
However, over the past few days, weighted sentiment on APTOS has fallen significantly, while sentiment on AVAX has surged.
Realistic or not, here is AVAX’s market cap in terms of BTC:
Source: Santiment
