Table of Contents

1. Project Overview

2. 4Q23 Highlights

   2-1. Major Events & Updates

   2-2. Key Metrics

3. On-chain Performance

   3-1. Network Activity

   3-2. Network Security

   3-3. Developer Activity

4. Partnerships, Major Events, and Ecosystem Protocol Updates

   4-1. Partnerships

   4-2. Major Events

   4-3. Major Protocols within the Ecosystem

5. Closing Thoughts

1. Project Overview

Aptos is a monolithic Proof of Stake (PoS) blockchain conceived by seasoned developers from the Diem project, prioritizing speed and stability. With a design aimed at achieving over +100,000 Transactions Per Second (TPS) and sub-second latency using advanced technologies like AptosBFT and BlockSTM, AptoS promises a high-performance infrastructure. Furthermore, it offers a dependable and flexible development environment through the Move language, ensuring a satisfying blockchain experience for both developers and users.

2. 4Q23 Highlights

2-1. Major Events & Updates

Strategic Partnerships for Aptos Ecosystem Growth: Alibaba Cloud, READYgg, SK Telecom, Seoulland 

• Partnered with Alibaba Cloud to participate in the 'Alibaba Cloud Singapore Innovation Accelerator' program, focusing on talent acquisition in the Asia-Pacific region and enhancing Web3 accessibility.
• Collaborated with READYgg, a Web3 game infrastructure developer (The Ready Games), to facilitate the smooth integration of Web2 games onto the Aptos network.
• Established a significant partnership with SK Telecom, making Aptos the preferred blockchain for non-EVM chains, and supporting the development of SK Telecom's pioneering Web3 service 'T Wallet' in collaboration with Atomrigs Lab.
• Engaged in a strategic collaboration with Seoul Land to promote the global expansion of the 'Seoul Land Universe' service, contributing to the growth of the Web3 ecosystem.

4Q23 Key Events: Launch of Web3 Login Solution Identity Connect, $APT Staking Support on Coinbase Cloud, Development of Aptos Move Compiler, Introduction of Graffio Drawing Platform

• Identity Connect debuts as an innovative login solution, enabling seamless wallet integration and instant app access via social login, enhancing user experience for Aptos network participants.
• Coinbase Cloud's support for $APT staking improves accessibility to staking services, boosting network participation in validation.
• The unveiling of Aptos Move Compiler empowers developers with advanced features for Move smart contract language, enhancing development capabilities within the Aptos ecosystem.
• Graffio, a blockchain-powered drawing platform, is introduced to commemorate the 1st anniversary of the Aptos network launch. By rewarding community artists with commemorative canvas snapshot NFTs, Graffio strengthens community cohesion and engagement.

Ecosystem Expansion Continues: DeFi Growth and Increased Ecosystem Projects

• Thala stands out as a leading DeFi protocol within the Aptos ecosystem, contributing to innovation and liquidity enhancement.
• Aries Markets introduces user-friendly features to DEX platforms, streamlining account management and improving accessibility.
• Amnis Finance pioneers Liquid Staking protocols, issuing $stAPT proportionate to staked $APT, incentivizing engagement and reinforcing network security.

2-2. Key Metrics

3. On-chain Performance

3-1. Network Activity

Aptos has sustained a consistent daily transaction volume since the 3rd quarter, albeit with a slight decline. In the 4th quarter, transactions decreased by -1.3% compared to the previous quarter, totaling 482,600 transactions. Notably, there were two significant transaction spikes: 1.9M transactions on October 19th and 38M transactions on December 24.

The surge on October 19th coincided with the launch of 'Graffio,' a decentralized social application commemorating the 1st anniversary of the Aptos mainnet. Within 24 hours, Graffio facilitated 1.3M transactions across 605,000 wallet addresses. The December 24th spike was fueled by the listing of the meme coin GUI/APT on Pancakeswap, generating trading volumes of $2M, alongside the success of the APT-20 inscription.

The daily active wallet count shows a pattern similar to transaction count but with more pronounced fluctuations. While the transaction count in the fourth quarter decreased by -1.4% compared to the previous quarter, the daily active wallet count in the same period saw a steeper decline of -14.2%, reaching 69.6M. Notably, there was a significant surge in active wallets to 613K on October 19, followed by a relatively modest increase to around 110K by the end of December. This contrasting trend compared to transaction count suggests that on October 19, transactions were distributed relatively evenly across multiple wallets, whereas on December 24th, a substantial volume of transactions occurred from a few wallets.

Aptos' TVL consistently hovered in the range of $40M to $60M until experiencing a significant surge starting from the fourth quarter of this year. By the end of the fourth quarter, the TVL had soared by 166% compared to the previous quarter, reaching 117.8M. As of December 31, 62.3% of the TVL in the Aptos network was deposited in Thala, the largest DeFi protocol in the ecosystem, with 25.3% and 24.2% deposited in the margin trading protocol Aries Markets and the liquidity staking protocol Amnis Finance, respectively. The rapid increase in Aptos TVL appears to be attributed to the upcoming second token airdrop program scheduled for 2024, named 'Aptos Airdrop 2nd.'

3-2. Network Security

In the fourth quarter, Aptos boasted a total of 126 validators, evenly dispersed across 27 countries spanning regions such as South America, Europe, Russia, Japan, and Korea. The highest concentrations of validators were observed in the United States and Germany, each with 14 active validators. However, the number of validators in Korea saw a decrease from 13 in the third quarter to 9 in the fourth quarter. Presently, the amount of $APT staked in the Aptos network stands at 914.2M, representing 84.9% of the total supply.

3-3. Developer Activity

The Aptos network benefits from contributions by an average of approximately 60 developers, who collectively recorded around 1500 code commits on average. However, in the fourth quarter, there was a decline of about -2.9% in the number of developers and a -5.1% decrease in the number of code commits. This indicates a slight downturn in developer activity compared to the third quarter.

4. Partnerships, Major Events, and Ecosystem Protocol Updates

4-1. Partnerships

Alibaba Cloud

Aptos Foundation has forged a partnership with Alibaba Cloud, a subsidiary of Alibaba Group. Through this collaboration, Aptos Foundation and Alibaba Cloud aim to bolster Web3 accessibility in the Asia-Pacific region and foster talent acquisition to cultivate the developer community for Aptos' development language, MOVE. To this end, Aptos Foundation will participate as a blockchain sponsor in Alibaba Cloud's 'Innovation Accelerator' program, offering diverse support to promising builders on the Aptos platform.

READYgg

Aptos Labs is set to support the integration of Web2 games into the Web3 ecosystem through a partnership with READYgg (The Ready Games), a developer of Web3 game infrastructure. READYgg has inked contracts with over 20 major Web2 game publishers and boasts a library of over 2,000 games enjoyed by a monthly active user base of 200M. Leveraging the features of the 'MOVE' language, which offers Aptos high TPS and a flexible development environment, READYgg plans to expand the Web3 game ecosystem. As part of this process, Aptos-based NFTs will be implemented across various games and platforms developed by READYgg.

SK Telecom

Aptos Labs has forged a three-way partnership with SK Telecom, a leading mobile telecommunication service provider, and Atomrigs Lab, a Web3 infrastructure solution company, with the goal of enhancing SK Telecom's virtual asset wallet service, 'T Wallet'. Serving as SK Telecom's inaugural blockchain partner for non-EVM chains, Aptos aims to facilitate broader user access to Web3 services through MoveVM blockchain technology. Furthermore, by bridging promising dApp ecosystems within Aptos to T Wallet, Aptos intends to offer users tangible real-world applications.

Seoulland

Aptos Foundation has partnered with Seoulland to cultivate and expand the Web3 ecosystem. Seoulland plans to capitalize on the strengths of the Aptos Network's TPS and MOVE language to concentrate on expanding 'Seoulland Universe,' Seoulland's blockchain-based service. Seoulland Universe integrates exclusive membership experiences such as Seoulland's IRL (In Real Life) events, festivals, and NFT ticketing with Web3 technology.

4.2 Major Events

Release of Web3 Login Solution: Identity Connect

Aptos Labs has launched 'Identity Connect,' a Web3 login solution that streamlines authentication processes by eliminating repetitive reauthentication. Identity Connect allows users to link all wallets through social login and access applications with a single login. This simplifies wallet creation, seed phrase management, and wallet integration across various applications, promising users a seamless UX (User Experience).

Coinbase Cloud Supports $APT Staking

Blockchain infrastructure company Coinbase Cloud has announced its support for $APT staking services. Users interested in staking $APT tokens can now do so through Coinbase Cloud without the need for separate network setup. This development is expected to increase accessibility to $APT staking and enhance the security of the Aptos network.

Development of Aptos Move Compiler

Aptos Labs has unveiled the development of the 'Aptos Move Compiler.' A compiler is a language translation program that translates documents written in one programming language into another. This service aims to support the development environment of Aptos' programming language, MOVE, by providing various language features such as function calls and support for higher-order functions. This advancement is anticipated to significantly improve the development environment of the Aptos network in the future.

Launch of Graffio Drawing Platform

In celebration of the one-year anniversary of its mainnet release, Aptos Labs has introduced 'Graffio,' a blockchain-based community drawing platform. Graffio allows community members to contribute artwork to a communal canvas, fostering creativity and collaboration. 

The Graffio canvas remains open for 24 hours, during which participants can create and share their drawings. As a token of appreciation, contributors receive commemorative canvas snapshot NFTs. Graffio's launch saw remarkable engagement, with over 1.3M transactions recorded from 605,000 wallet addresses within a 24-hour period.

However, Aptos encountered a temporary network halt lasting approximately 5 hours due to transaction overload at Graffio's launch. Aptos Labs promptly addressed the issue, reassuring users of the network's stability and security. They clarified that no funds were compromised and attributed the disruption to a code change implemented in August.

4-3. Major Protocols within the Ecosystem

Protocols within the Aptos network ecosystem experienced significant growth during the fourth quarter, largely attributed to Aptos' second airdrop program, 'Aptos Airdrop 2nd,' scheduled for 2024. Leading the Aptos ecosystem are the following key protocols:

Thala

Thala, a decentralized finance protocol powered by the 'Move' language, secured a $6M seed round led by ParaFi Capital, White Star Capital, and Shima Capital in October 2022. Thala developed 'Move Dollar,' the native stablecoin for use within the Aptos network. Through its 'liquidity bootstrapping pool (LBP)' mechanism, Thala's DEX service offers initial high pricing that adjusts automatically over time, minimizing price volatility. Since the launch of its liquid staking service in November, Thala has rapidly gained traction within the Aptos ecosystem. Its TVL surged by approximately 439% during the fourth quarter, reaching $75.38M as of December 31.

Aries Markets

Aries Markets operates as a DEX within the Aptos network, offering various DeFi services such as lending, borrowing, leverage swapping, and margin trading. Launched in August, Aries Markets garnered attention for its robust account management system. Users benefit from the platform's easy portfolio management and the ability to adopt and track diverse investment strategies seamlessly. Built upon the Aptos network's strengths of low latency and high speed, Aries Markets utilizes an on-chain order book AMM (Automated Market Maker) approach, ensuring an efficient and transparent trading environment. As of December 31, Aries Markets boasted a TVL of $30.61M, marking an impressive 1,511% increase during the fourth quarter.

Amnis Finance

Amnis Finance serves as a liquidity staking protocol within the Aptos network. Users stake Aptos and receive stAPT tokens equivalent in value to their staked $APT. With stAPT, users can earn rewards from $APT staking and employ strategies such as leveraging and hedging. Since its launch in October, Amnis Finance has experienced consistent growth. As of December 31, the protocol's TVL reached $29.23M, marking approximately a 180% increase during the fourth quarter.

5. Closing Thoughts

Aptos experienced notable growth in the fourth quarter of 2023. The Aptos Foundation partnered with Alibaba Cloud to build a community of MOVE language developers, and partnered with Seoul Land to expand the ecosystem. Aptos Labs has also entered into partnerships with READYgg and SK Telecom to further develop the Aptos ecosystem. Of particular significance in the fourth quarter was the substantial increase in TVL within the Aptos network. While this surge may have been driven by anticipation for the $APT airdrop, it underscores the success of protocols within the Aptos ecosystem in attracting both funds and users. Despite previous ecosystem activity not matching its high TPS and flexible development environment, the fourth quarter of 2023 showed significant improvement in ecosystem engagement.