ApeCoin, the original token of Bored Ape Yacht Club (BAYC), is currently nothing more than a fantasy as it has no use whatsoever other than being a governance token.

Despite this, it somehow managed to lose more than 98% of its investors in less than four months since its launch.

Return to its prehistoric state?

Launched at $8, APE quickly rallied, reaching its all-time high of $27. The journey since then has been humiliating and devastating for investors, as APE currently trades at $3.5. The most recent addition to its demise was last week’s 45.43% crash.

ApeCoin price promotion | Source: TradingView – AMBCrypto

This has resulted in 98.22% of APE holders witnessing losses. Although the total number of investors is just over 73k at the moment, they still account for about $750 million worth of APE.

ApeCoin Investors in Losses | Source: Intotheblock – AMBCrypto

This has resulted in a severe decline in the overall volume of APE traded on-chain as investors find it wiser to hold onto their assets until the situation improves.

In less than a month, the average transaction volume has dropped to an average of just $20 million.

ApeCoin transaction volume | Source: Intotheblock – AMBCrypto

Now, the BAYC is once again counting on its social appeal to skyrocket the altcoin’s value, just like it did at launch.

Will the APE jump again?

The second iteration of the Apefest, which started in October 2021, is slated for June 20, which could potentially be a huge trigger for the price action.

This could also be driven by the increasing value and demand for the largest NFT collection, which has generated $1.2 million in sales in the past 18 days alone.

In addition, its second largest competitor, Otherdeed NFTs, which is also owned by Yuga Labs, maker of BAYC NFTs, only managed to bring in $461k.

Top NFT Collections On Sale | Source: Intotheblock – AMBCrypto

This is despite the fact that the total number of BAYCs sold has decreased significantly. While it may appear as if demand is declining, it is in fact due to the rise in BAYC value that only 718 NFTs were sold last month.

The average price of a BAYC peaked at $145.5k in April, falling to $124k last month. This is why, despite lower sales, sales volume was higher than in times when sales were huge.

In the past two months alone, BAYC generated $173 million in sales, indicating that the NFT Collection was still a highly valued asset. †

BAYC NFT’s Average Price | Source: Dune – AMBCrypto

This post Decrypt If ApeCoin Can Recover Its 45% Drop Before ApeFest

was published first on https://ambcrypto.com/can-apecoin-recover-its-45-descent-ahead-of-the-apefest/


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