- Stake rewards for ApeCoin dropped significantly
- Interest in the APE token waned and NFTs linked to the token were also affected
The announcement of stake rewards for ApeCoin [APE] generated great interest. There was an increase in buying the token itself, along with associated NFTs. A few days after the announcement, however, interest in APE fell away.
Read ApeCoin’s [APE] Price prediction 2023-2024
One reason for the declining interest in APE may be the declining rewards generated from stake pools.
According to data provided by Dune Analytics, rewards released to stakeholders dropped significantly.
Furthermore, another reason for the declining interest in ApeCoin may be the impact caused by Binance FUD.
According to DEX data, APE was dumped heavily since December 11. Although the huge amount of sales had stopped, the increase in purchases was not enough to restore much confidence in the token.
It wasn’t just the symbol that was affected. NFT collections associated ApeCoinsuch as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) were also affected.
One area that was affected was the average floor price of the BAYC collection. As seen in the chart below, the floor price has fallen by 4.85% over the past seven days. The average price at which an NFT was sold also fell by 2.37% in the same period.
The MAYC collection was also affected in this sector. The floor price had fallen by 3.7% and the average price had fallen by 2.19% in the last seven days, according to NFTGO.
The on-chain calculations of ApeCoin
ApeCoin looked bleak, even in terms of on-chain calculations.
The daily active addresses decreased, signaling that activity on the ApeCoin network had decreased. In a similar way, network growth also fell. Shrinking network growth suggested that the number of new users transferring APE for the first time fell significantly.
However, APE’s speed witnessed an increase, indicating that the number of new addresses transferring APE had decreased.
These factors contributed to the falling price of APE. Due to the price decline, the ratio between market value and realized value (MVRV) also fell. A low MVRV ratio suggested that if most holders sold, they would do so at a loss.
However, the long/short spread of APE rose. This meant that old HODLers who have held the token for a longer period of time could still make money if they sold their tokens.
It remains to be determined whether long-term APE holders will succumb to the selling pressure or whether they will ride out the storm.