Staking rewards for ApeCoin dropped significantly
Interest in the APE token declined and NFTs linked to the token were also affected

The announcement of turning off rewards for ApeCoin [APE] generated a lot of interest. There was an uptick in buying the token itself, along with associated NFTs. However, a few days after the announcement, interest in APE faded.

Read ApeCoins [APE] Price prediction 2023-2024

One reason for the declining interest in APE could be the declining interest rewards generated by staking pools.

According to data from Dune Analytics, rewards paid to stakeholders have dropped significantly.

Source: Dune analysis

Another reason for the declining interest in ApeCoin could be the impact caused by the Binance FUD.

According to data from DEX, APE has been heavily dumped since December 11. Although the massive amount of selling had stopped, the spike in buying was not enough to restore much confidence in the token.

Source: Dune analysis

Cheating

It wasn’t just the token that was affected. NFT collections associated with ApeCoinsuch as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) were also affected.

One area that was affected was the average bottom price of the BAYC collection. As shown in the chart below, the bottom price is down 4.85% over the past seven days. The average price at which an NFT was sold also fell by 2.37% over the same period.

The MAYC collection was also affected in this sector. The floor price was down 3.7% in the past seven days and the average price was down 2.19% in the past seven days. NFTGO.

Source: NFTGO

ApeCoin’s on-chain metrics

ApeCoin looked bleak, even in terms of on-chain metrics.

The daily active addresses decreased, indicating that activity on the ApeCoin network had decreased. Similarly, network growth also declined. Shrinking network growth meant that the number of new users switching to APE for the first time fell significantly.

However, the speed of APE witnessed a spike, indicating that the number of new addresses APE was porting had decreased.

Source: Sentiment

These factors have contributed to the falling price of APE. Due to the fall in prices, the ratio of Market Value to Realized Value (MVRV) has also fallen. A low MVRV ratio suggested that if most holders sold, they would do so at a loss.

However, the long/short difference of APE increased. This implied that old HODLers who have owned the token for longer can still make a profit if they sell their tokens.

Source: Sentiment

It remains to be determined whether APE holders would succumb to the selling pressure in the long run or weather the storm.



This post ApeCoin’s short-lived staking hype could have this impact on APE and its holders

was published first on https://ambcrypto.com/apecoins-short-lived-staking-hype-could-have-this-impact-on-ape-and-its-holders/

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