AVAX and Aptos – Will ETF Mania hit these coins next?

• Avalanche and Aptos touted to be next in line for ETF approval
• Both tokens saw their prices fall significantly over the last few days

The approval of ETFs and the anticipation surrounding the verdict has helped the prices of both BTC and ETH. However, there is a possibility that the surges in price won’t be limited to the blue chip coins aline.

In fact, Avalanche [AVAX] and Aptos [APT] have now been cited as cryptocurrencies that might join the club, if companies choose to file them.

Will Avalanche and Aptos be next?

According to data shared by GSR, Avalanche and Aptos have a higher chance of getting their ETFs approved, provided the Solana ETF application gets approval.

GSR’s study revealed that regulatory bodies like the SEC are showing signs of openness towards spot ETFs for cryptocurrencies that meet specific criteria. This is a significant shift, when compared how it has been over the last few years.

Decentralization and potential investor demand are seen as key factors. A higher level of decentralization, meaning a network not controlled by a single entity, is likely to be viewed favorably for ETF approval. Metrics like Nakamoto Coefficient, Staking Requirements, and CCData Governance Rating can help assess this.

Among other cryptocurrencies, Avalanche and Aptos have a good chance of getting ETF approval due to their relatively decentralized structures according to GSR.

Even with a high decentralization score, an ETF is unlikely if there’s not enough investor interest though. Ergo, issuers will weigh both factors when deciding which cryptocurrencies to pursue for ETFs.

ETF approval would make Avalanche and Aptos more accessible to mainstream investors who might be hesitant to directly buy cryptocurrencies on exchanges. This could significantly increase their user base and adoption.

However, at the time of writing, things were looking bleak for both the protocols. Daily activity on both protocols and transactions declined materially over the last few days. Moreover, the TVL (Total Value Locked) fell across the board, implying that the protocols’ performance was not positive in the DeFi sector.

Source: Artemis

How are the tokens doing?

The price movements of both these tokens witnessed a significant decline over the past months, showing signs of a bearish trend.

However, while weighted sentiment around APTOS fell significantly over the last few days, the sentiment around AVAX surged.

Realistic or not, here’s AVAX market cap in BTC’s terms

Source: Santiment