Cryptocurrency

Decoding if ApeCoin can recover its 45% descent ahead of ApeFest

ApeCoin, the native token of Bored Ape Yacht Club (BAYC) is presently nothing greater than a fantasy because it serves no use case aside from being a governance token.

Despite that, it has one way or the other managed to convey losses to greater than 98% of its traders in lower than 4 months since its launch.

Returning to its prehistoric state?

Launched at $8, APE was fast to rally and attain its all-time excessive of $27. The journey since then has been mortifying and devastating for traders since APE is presently buying and selling at $3.5. The most up-to-date addition to its downfall got here with the 45.43% crash final week. 

ApeCoin worth motion | Source: TradingView – AMBCrypto

This has resulted in 98.22% of APE holders witnessing losses. Although the whole quantity of traders for the time being is a bit of over 73k, they nonetheless account for about $750 million price of APE.

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ApeCoin traders in losses | Source: Intotheblock – AMBCrypto

This has resulted in a extreme decline within the whole quantity of APE transacted on-chain since traders discover it wiser to carry their property till the state of affairs will get higher.

In lower than a month, the typical transaction quantity has decreased to only $20 million on common.

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ApeCoin transaction quantity | Source: Intotheblock – AMBCrypto

Now, the BAYC is banking on its social attraction as soon as once more to skyrocket the altcoin’s worth because it did with its launch.

Will the APE start leaping once more?

The second iteration of the Apefest, which started in October 2021, is scheduled to happen from 20 June, which may doubtlessly be an enormous set off for the worth motion.

This may be propelled by the growing worth and demand of the largest NFT assortment, which within the final 18 days alone, has amounted to $1.2 million price of gross sales.

Moreover, its second-biggest competitor, Otherdeed NFTs, which can also be a property of Yuga Labs, the maker of BAYC NFTs, solely managed to rake in $461k.

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Top NFT collections by sale | Source: Intotheblock – AMBCrypto

This is even though the whole quantity of BAYC bought has decreased considerably. Although it could seem as a decline in demand, it’s really because of the enhance in BAYC worth that merely 718 NFTs had been bought final month.

The common worth of a BAYC peaked in April at $145.5k, which decreased to $124k final month. This is why, in spite of lesser gross sales, the sale quantity has been greater than occasions when gross sales had been enormous.

In the final two months alone, BAYC generated $173 million price of gross sales, indicating that the NFT assortment was nonetheless a extremely valued asset. .

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BAYC NFTs common worth | Source: Dune – AMBCrypto

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