Table of Contents

1. Project Overview

2. 3Q23 Highlights

2-1. Key Events & Updates

2-2. Key Metrics

3. On-Chain Performance

3-1. Network Activity

3-2. Network Security

3-3. Development Activity

4. Governance, Partnership & Key Updates

4-1. Governance (AIPs)

4-2. Partnership

4-3. Key Events & Features

5. Closing Thoughts

1. Project Overview

Created by Diem developers, Aptos is a monolithic PoS blockchain prioritizing speed and stability. Leveraging exceptional technologies like AptosBFT and BlockSTM, Aptos is designed to theoretically achieve over +100,000 TPS (Transactions Per Second) and latency of less than one second. Furthermore, it provides a dependable, swift, and adaptable development environment using the Move language, delivering a blockchain experience that caters to the needs of both developers and users.

2. 3Q23 Highlights

2-1. Key Events & Updates

Partnerships bridging Web2 and Web3: Microsoft, Sushi, Pyth, and Flowcarbon

• In collaboration with Microsoft, Aptos foundation is working towards the integration of the "Aptos Assistant" feature, aiming to bridge the AI ecosystem with the blockchain. This strategic move positions Aptos at the forefront of the AI and DeFi revolution.
• Aptos is the first non-EVM chain on SushiSwap.
• Aptos foundation will work with Pyth to introduce Oracle solutions that power the Peace data feed. This will grant Aptos ecosystem dApps permissionless access to these data feeds.
• In partnership with Flowcarbon, Aptos foundation will launch a new program on the Aptos network, offering high-quality carbon removal credits.

Q3 Key Events: Release of Wormhole Connect v0.0.7, introduction of mobile APT staking support in the Petra wallet, launch of Surf, and the unveiling of the Martian asset management tool

• The latest Wormhole Connect v0.0.7 provides developers with a user-friendly development interface.
• The Petra mobile wallet app enhances staking accessibility by enabling mobile staking.
• Thala Labs has launched Surf, an Aptos SDK TypeScript interface, improving development convenience.
• The Martian Wallet introduces a portfolio dApp that allows users to manage tokens and NFTs associated with their Aptos network accounts. This app offers various features, including bridging, price tracking, and staking.

Suspension of the METAPIXEL Project

• On September 3rd, the Meta Division of NPIXEL, which was actively developing the highly anticipated Metapixel (METAPIXEL) project within Aptos, abruptly declared its dissolution.

In the third quarter, a total of 8 AIPs were passed and integrated into the protocol, with the most notable ones being AIP-35, AIP-39, and AIP-37

• AIP-35 addresses network losses and boosts security by charging fees for transactions causing errors, rather than simply reverting them.
• AIP-39 enhances user convenience and stimulates network activity by introducing mechanism for specifying a different gas payer account from the transaction sender.
• AIP-37 establishes a more streamlined network by filtering duplicate transactions within blocks.

Aptos accomplished additional significant technical milestones, including the introduction of the Digital Asset Standard.

2-2. Key Metrics

3. On-Chain Performance

3-1. Network Activity

Daily transaction count on Aptos has demonstrated gradual growth since 4Q22 when the mainnet was launched, and it has witnessed significant upsurge since 3Q23. In particular, during 3Q23, the platform witnessed a total of 489,000 daily transactions, marking a remarkable 207% surge from the preceding quarter. While the mainnet launch in 4Q22 generated elevated transaction volumes due to airdrop activities, the Aptos token unlock event led to a sharp increase in transaction volumes in July and August.

Daily active wallet count mirrors the trend of daily transactions, reflecting a relatively even distribution of transactions across various wallets instead of being concentrated in one specific wallet. The peak numbers were recorded in Q4 of the previous year, coinciding with the mainnet launch and associated airdrops. Subsequently, similar to daily transaction count, the daily active wallet count has risen to approximately 69,000 in Q3, marking a substantial 329% increase over the preceding quarter.

Since the launch of the Aptos Mainnet in October 2022, Total Value Locked (TVL) has remained consistent, ranging from $600-700 million. More than half of the TVL on the Aptos network is held in Thala Swap and LiquidSwap by Thala Labs, which are the largest dApps within the ecosystem.

3-2. Network Security

In Q3, Aptos boasts a global network of 113 validators spanning 25 countries, including South America, Europe, Russia, Japan, and South Korea. It's noteworthy that South Korea alone has 13 validators, underscoring the significance and potential of the Korean market for Aptos. The United States holds the highest concentration of validators, totaling 14. Currently, there are 868.8 million $APT tokens staked on the Aptos network, constituting 81.8% of the total supply.

3-3. Development Activity

The Aptos Network continues to benefit from an average of around 60 developers contributing to its development, with a consistent weekly commit rate averaging 100 per week. Particularly in Q3, the developer count increased by approximately 8% compared to Q2, accompanied by a 15% increase in weekly commits. These metrics reflect the ongoing and proactive maintenance of the network.

4. Governance, Partnerships, and Key Updates

4-1. Governance (AIPs)

A total of eight AIPs were implemented in Q3, with significant highlights as follows (refer to the figure below):

AIP-35

Before AIP-35, if developers submitted code with errors, the transaction would fail, and developers would not be charged. However, with the implementation of [AIP-35: Enable charge_invariant_violation] on July 18 introduced the ability to charge for errors in transactions, a positive step toward minimizing damages and enhancing network security.

AIP-39

Previously, gas fees were sent to the transaction sender. However, the execution of [AIP-39 : Enable fee payer] on August 23 added the feature of a third party paying for gas fees. Similar to Ethereum's PAY MASTER, this enhancement is anticipated to significantly improve user experience, with increased convenience expected to bring vitality to the network.

AIP-37

AIP-37 is a proposal aimed at enhancing Aptos by filtering out duplicate transactions within a block before submission to the network. With the implementation of [AIP-37: Enable Transaction Dedup] on July 18, duplicate transactions are no longer submitted to the network, leading to anticipated reductions in network costs and enhanced security.

4-2. Partnerships

Aptos foundation forged several key partnerships in Q3, encompassing both Web2 and Web3. Here's a breakdown of the notable collaborations during this quarter.

Microsoft

In August, following an extensive collaboration, Microsoft joined the roster of prominent Web2 companies building on Aptos, including Google Cloud, Mastercard, NBC Universal, KYD Labs, NPIXEL (METAPIXEL), MoonPay, and Franklin Templeton.

This strategic partnership aims to integrate the AI ecosystem into the blockchain. Leveraging Microsoft's advanced AI technology, the collaboration will introduce "Aptos Assistant" with natural language support. Users will benefit from AI assistance in coding implementation and dApp development, positioning Aptos at the forefront of AIxDeFi innovation.

SushiSwap

At the Aptos Hackathon in Singapore, Aptos foundation announced a partnership with SushiSwap, a leading cross-chain DeFi platform. This collaboration is noteworthy as SushiSwap primarily supports various EVM-compatible chains like Ethereum, Phantom, and Polycon, making Aptos the first non-EVM chain to establish a partnership with them.

Pyth

Aptos foundation has established a partnership with Pyth Network, a provider of Oracle solutions. This collaboration involves providing a Peace data feed on the Aptos mainnet and hints at the potential introduction of an automated price scheduler. All programs developed on Aptos will have permissionless access to the Peace data feed.

Flowcarbon

The Aptos Foundation has initiated a partnership with Flowcarbon to initiate sustainability initiatives. Flowcarbon currently leads in tracking on-chain carbon emissions, and the new program will deliver high-quality carbon removal credits on the Aptos network, contributing to carbon reduction and fostering sustainable development. This partnership is noteworthy for its role in tracking carbon offsets on the Aptos Network.

Other partnerships involve prominent domestic entities like MARBLEX, Lotte Group, and Neowiz's Intella X. Additionally, a collaboration with KYD Labs designates Aptos as the official ticketing partner for the WonderBus Music & Arts Festival.

On the flip side, certain partnerships have shown signs of weakening. The Meta Division of Npixel, actively engaged in Aptos's highly anticipated METAPIXEL project, abruptly declared its dissolution, resulting in the indefinite suspension of Metapixel.

4-3. Key Events & Features

Key events and feature enhancements in the third quarter include:

Wormhole Connect’s v0.0.7 Release

The integration of the latest Wormhole Connect’s v0.0.7 with allows any Aptos developers to seamlessly add bridging directly into their dApp in as few as “3 lines of code.” This serves to streamline the developer experience, exemplified by the ease with which dApp developers can modify the UI using concise code.

Inderxer.xyz (Byzantion) Launches Aptos Indexer Notification System

Inderxer.xyz (Byzantion) has rolled out a notification system enabling users to receive alerts for NFT trades or accepted bids across any of Aptos' marketplaces.

Petra Wallet Mobile APT Staking Support

Aptos has expanded staking capabilities to mobile users. The Petra mobile wallet app facilitates staking, allowing users to engage with as little as 11 APT. This initiative significantly reduces the entry barrier to the network, making it cost-effective and accessible to a broader audience.

Thala Labs Unveils Surf

Thala Labs has introduced Surf, a typestrip interface utilizing Aptos React hooks to address existing limitations in the Aptos SDK. Surf offers solutions to fix existing problems. By statically inferring from ABI, Surf can give you information on what input and output to expect as you write your code. This minimizes the likelihood of errors during code creation. Furthermore, the design adapts based on the functionality provided, enhancing developer usability.

Martian Launches Asset Management Tool

Martian Wallet has unveiled a Portfolio dApp enabling users to oversee tokens and NFTs within their Aptos Network accounts. The dashboard provides a comprehensive view of owned tokens and NFTs, with built-in features to track token prices. Users can execute various functions like buying, swapping, staking, and sending tokens directly from the dApp, along with bridge functionalities.

In addition, the Aptos ecosystem witnessed various events in Q3. Econia Labs introduced new governance tools with the Aptos CLI release, and Msafe launched its second-generation multisig solution.

Launch of the Digital Asset Standard

Aptos achieved a significant technical milestone in Q3 with the introduction of the Digital Asset Standard. Token standards play a crucial role in establishing a shared foundation for creating, managing, and interacting with digital assets in the blockchain ecosystem. The Aptos DA provides builders with unparalleled flexibility, configurability, and scalability.

Flexibility, configurability, and efficiency are often challenging to achieve simultaneously in token standards, but Aptos DA delivers on all fronts. By focusing on various token specifications applicable in the real world, such as airdrops and soul-bound tokens (SBTs), the Aptos DA aims to minimize complexity and foster a dynamic and adaptable token ecosystem.

5. Closing Remarks

Aptos experienced substantial growth on both technological and ecosystem fronts in 3Q23. Transactions and active wallets surged by over 200% quarter-over-quarter, accompanied by a high single-digit increase in developer activity. Despite the unexpected closure of MetaPixel HQ, a highly anticipated project in the gaming sector, Aptos foundation offset the setback by revealing strategic collaborations and onboarding initiatives with Microsoft, Peace, Sushi, Wormhole, and various other companies and projects. Moreover, Aptos introduced eight AIPs during Q3, reinforcing its commitment to enhancing network performance. Additionally, the launch of the first Digital Asset Standard marked a significant milestone, greatly improving the usability of the Move language.