Apecoin: A Worthy Investment Or Just Another Meme Coin?

ApeCoin (APE) is the native token of the Bored Ape Yacht Club (BAYC) – one of the most popular collections of non-fungible tokens (NFTs). It is a cryptocurrency that can be used to participate in governance decisions through the ApeCoin Decentralised Autonomous Organisation (DAO).

Since its launch in March 2022, APE has experienced significant price fluctuations. It reached an all-time high of $39.40 in 2022, but has since dropped to around $14.58, with a market capitalisation of over $480 million.

So, is it worth investing in? Well, that's a difficult question to answer. On the one hand, APE is associated with one of the most popular NFTs and has a high market cap, making it easily visible to investors. It's also listed on major crypto exchanges and has the backing of crypto heavyweights. On the other hand, investing in crypto is highly volatile and unregulated in some countries, and there's always the risk that the value of Ethereum, which APE is tied to, could drop.

Ultimately, it's up to you to decide whether or not to invest, but be sure to do your research and understand the risks involved.

ApeCoin's association with the Bored Ape Yacht Club NFTs

ApeCoin (APE) is the native token of the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection. BAYC is one of the most popular NFT collections, with each NFT depicting a unique cartoon ape with its own colour scheme, facial expressions, and attire.

ApeCoin was introduced on 16 or 17 March 2022 by Yuga Labs, the creators of BAYC, to empower a decentralised community at the forefront of web3 development. The token is designed to be a decentralised protocol layer for community-led activities in the metaverse, such as hosting events and developing digital goods.

As the native token of the BAYC ecosystem, ApeCoin allows holders to participate in governance decisions through the ApeCoin Decentralised Autonomous Organisation (DAO). The DAO is in charge of decisions regarding ecosystem fund allocations, governance rules, upcoming projects, and partnerships.

ApeCoin is an ERC-20 token on the Ethereum blockchain. It can be used in several ways:

• Incentivisation: Third-party developers can integrate APE into games, projects, and other services to participate in the ecosystem.
• Access: APE provides access to exclusive events, games, and merchandise within the BAYC ecosystem.
• Unification of Spend: APE can be used to purchase products and services within the BAYC ecosystem, such as play-to-earn games.
• Governance: APE holders can vote on governance decisions within the DAO.

The total supply of APE is capped at 1 billion tokens, and they were distributed as follows:

• 62% to the ecosystem fund, given to BAYC and Mutant Ape Yacht Club (MAYC) NFT holders
• 16% to Yuga Labs and charities
• 14% to companies and individuals who helped create the project
• 8% to BAYC founders

However, it is important to note that the NFT market has experienced significant volatility, and the value of ApeCoin has fluctuated since its launch. Therefore, investing in ApeCoin carries risks, and it is crucial to conduct thorough research before making any investment decisions.

ApeCoin's market cap

However, ApeCoin's price has been volatile, and it has experienced significant drops since its initial surge. As of July 2024, the market cap of ApeCoin is $535.21 million, with a 24-hour trading volume of $81.76 million. The current price of ApeCoin is $0.793361, with a circulating supply of 674.64 million APE coins and a maximum supply of 1 billion APE coins.

ApeCoin's all-time high was $26.70-$26.80, recorded in April 2022, and its all-time low was $0.664318-$0.665576, recorded in July 2024. The cryptocurrency is currently ranked 125th-135th in cryptocurrencies by market capitalization.

ApeCoin is listed on major crypto exchanges

ApeCoin is listed on all major crypto exchanges, including Coinbase, Binance, and eToro. This is a huge advantage for ApeCoin, as it gives the cryptocurrency credibility and makes it easily accessible to investors. The listing on major exchanges also means that ApeCoin will likely benefit from new investments when the market rebounds.

The fact that ApeCoin is listed on all major exchanges could continue to play into its favour. Despite the bearish crypto market trends, analysts are optimistic that the market has bottomed out or is close to doing so. For example, long-term Bitcoin holders are no longer selling their BTC, even though most are now at a loss of over 30%. This indicates that they are confident in the market making a rebound, which could benefit ApeCoin.

The listing on major exchanges also means that ApeCoin has high visibility and credibility in the eyes of investors. This is especially important given the large number of cryptocurrencies on the market and the many scams and pump-and-dump schemes that exist. ApeCoin's high market cap and listing on major exchanges give it an edge over other new cryptocurrencies.

In addition to the major exchanges, ApeCoin is also available on smaller exchanges, such as Crypto.com, Gemini, and Webull. However, at the time of writing, Binance has the most liquidity for ApeCoin trading.

ApeCoin's reserve risk

ApeCoin's Volatility and Risk

ApeCoin (APE) has experienced significant price fluctuations since its launch in March 2022. The token's value surged by 126.8% on its first day of trading but has since faced volatile periods, including a downward trend following its initial pump. This volatility underscores the high-risk nature of investing in ApeCoin, with the potential for substantial gains but also significant losses.

Market Competition and NFT Association

ApeCoin's success is closely tied to the popularity of the Bored Ape Yacht Club (BAYC) NFTs. The association with Yuga Labs, the creators of BAYC, gives ApeCoin a competitive advantage in the NFT and metaverse space. However, the NFT market has experienced a significant downturn, and there are questions about the future popularity of NFTs. ApeCoin also faces competition from established projects like Decentraland and The Sandbox, which have a first-mover advantage and significant market share.

Investor Confidence and Market Sentiment

ApeCoin's price is influenced by market sentiment and investor confidence. Positive news, partnerships, and endorsements can drive up the price, while adverse events can have the opposite effect. The broader cryptocurrency market trends also impact ApeCoin's value. If the market experiences a bull run, ApeCoin is likely to benefit. Additionally, investor speculation and trading volume play a crucial role in price movements, with higher volumes potentially leading to surges and low volumes resulting in stagnant or downward trends.

ApeCoin's Utility and Adoption

ApeCoin's utility within the Yuga Labs ecosystem and the broader crypto space is a key factor in its reserve risk. ApeCoin serves as a governance token for the ApeCoin DAO, allowing token holders to make decisions on various aspects of the project. It also functions as a utility token, facilitating transactions and providing access to exclusive parts of the ecosystem. The token's adoption by third-party developers and its integration into games, services, and other projects can enhance its utility and value. However, there is a risk that ApeCoin may not gain widespread adoption or achieve its intended goals, which could negatively impact its price.

ApeCoin is part of the Ethereum family

ApeCoin (APE) is an ERC-20 token, which means it is a custom-made cryptocurrency on the Ethereum blockchain. ERC-20 tokens follow a standard that ensures all tokens have similar functionality and are compatible with the broader Ethereum network.

As an ERC-20 token, APE can be used in four main ways:

• Incentivization: Third-party developers can participate in the APE ecosystem by integrating APE into games, projects, and other services.
• Access: APE functions as a gating token, providing limited access to certain parts of the ecosystem, such as exclusive events, games, and merchandise.
• Unification of spend: APE is the utility token of the APE ecosystem, meaning it can be used to purchase products and services such as play-to-earn games.
• Governance: APE is the governance token of the ApeCoin DAO, enabling holders to vote on decisions within the DAO.

Being an ERC-20 token on the Ethereum blockchain also means that ApeCoin is secured by Ethereum's proof-of-work (POW) consensus mechanism. This mechanism helps to ensure the security and integrity of transactions on the network.

The Ethereum blockchain is the world's most popular decentralized blockchain and is a key platform for ApeCoin. The rapid development of Web3, which is built on decentralized blockchains, has attracted significant capital and expertise worldwide, and the success of ApeCoin is closely tied to the growth of Web3 and the APE DAO.

In summary, ApeCoin is a part of the Ethereum family as it is an ERC-20 token built on the Ethereum blockchain and network. This relationship with Ethereum provides ApeCoin with security, compatibility, and access to a wide range of users and developers within the Ethereum ecosystem.

Frequently asked questions