APE Suffered Decline in New Holders After Launching APE Strike in Q4 2022. Krill Accounts Held 70.5% of APE’s total supply by the end of Q4 2022.
Apecoin’s continued decline [APE] value in Q4 2022, exacerbated by the unexpected implosion of cryptocurrency exchange FTX, Messari found in a new report that the meme coin recorded a temporary surge in new holders between October and December 2022.
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In its new report titled “State of ApeCoin Q4 2022,” Messari assessed the altcoin’s performance in Q4 2022 and found that the number of new holders temporarily increased ahead of the launch of APE staking.
Messari’s report suggests…
According to Messari, the APE ecosystem saw an influx of about 500 new holders per day in the fourth quarter, as evidenced by the number of unique wallet interactions. It further noted that this surge in interest in the fourth quarter was likely due to the impending launch of APE staking.
APE staking was launched on December 5 and since then holders can lock their APE tokens into four staking pools — ApeCoin pool, Bored Ape Yacht Club [BAYC] swimming pool, Mutant Ape Yacht Club [MAYC] pool and linked pool. This allows them to earn periodic returns. Per data from Ether scan108,298,954.439971 APE tokens worth over $630 million have been locked so far.
After the launch of the staking feature, the number of staking rewards claimed grew rapidly. The staking rewards were issued after a proposal passed through the DAO governance system.
However, the number of new holders declined as the increase in staking rewards led to increased selling pressure for the altcoin, making it undesirable for many new holders. According to Messari, the rapid drop in new APE holders revealed:
“That more product development is needed to create long-term demand for the APE token.”
The little ones had more APE tokens
According to its Dune Analytics dashboard, Messari had categorized the size of APE credit accounts based on the average APE price of $4 in Q4 2022.
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Account sizes are divided into several categories: krill ($250 or less), fish ($250 to $2,500), seal ($2,500 to $12,500), dolphin ($12,500 to $25,000), shark ($25,000 to $250,000 ) and whale ($250,000 or more).
At the end of the fourth quarter, 112,323 unique wallets had APE’s total supply, of which 70.5% were Krill accounts, 20.51% Fish, 5.92% Seal, 2.03% Dolphin, 1.17% Shark and 0.33% Whale. The Krill accounts saw significant gains in the quarter, while the mid-tiers (Fish, Seal, and Dolphin) saw share decline.
This post apecoin [APE] striking could have been its doom in the fourth quarter of 2022, a new report shows
was published first on https://ambcrypto.com/apecoin-ape-staking-might-have-been-its-undoing-in-q4-2022-new-report-shows/