ApeCoin Surges by 50 After ApeChain Launch
ApeCoin (APE) has seen a remarkable surge in price, skyrocketing by 50% in just 24 hours to reach $1.53. This surge has propelled APE’s market capitalization beyond the $1.1 billion mark, marking its highest point in six months.
The driving force behind this price rally is the recent launch of ApeChain, a Layer-3 blockchain that operates within the APE ecosystem. ApeChain has also introduced a cross-chain bridge, enabling seamless transfers of APE and other popular cryptocurrencies like Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) between the ApeChain, Ethereum (ETH), and Arbitrum (ARB) networks.
This development has significantly expanded the utility of APE within the Yuga Labs ecosystem, the company responsible for renowned NFT collections like the Bored Ape Yacht Club. APE token holders can now engage in yield farming, allowing for automatic returns on APE, ETH, and various stablecoins. This added functionality has increased the token’s appeal to both investors and users.
APE has also assumed a central role within the newly launched ApeChain as the network’s native gas token, used for paying transaction fees. Moreover, APE continues to be utilized for voting within the ApeCoin DAO and serves as a payment method for Yuga Labs’ products and real-world purchases.
Recent updates to ApeCoin’s smart contract have integrated the LayerZero Omnichain Fungible Token (OFT) standard, enabling APE to function as a governance token for the ApeCoin DAO across multiple blockchain networks.
The crypto community has taken notice of APE’s impressive performance, with some commentators on social media platform X (formerly Twitter) suggesting that the surge in APE’s price is fueled by FOMO (fear of missing out) among investors. This phenomenon is not uncommon in the crypto space, particularly when a token’s market capitalization surpasses $1 billion. At this stage, investors often anticipate a rapid price increase, driven by growing confidence in the token’s stability and reduced likelihood of market manipulation.
However, it’s important to note that technical indicators are suggesting caution. Both the Relative Strength Index (RSI) and Stochastic RSI for APE were above overbought levels at the time of reporting. In traditional markets, this often indicates a potential price correction. Nevertheless, the behavior of meme coins like APE can sometimes defy these indicators, especially when there is sustained interest from traders.
Looking ahead, data from CoinGlass reveals that a significant liquidation level for APE is $1.548. If the token’s price reaches this point, it could trigger the liquidation of approximately $2.59 million in short positions, potentially leading to further price volatility.