ApeCoin Price Rises 50% Following ApeChain Launch

TLDR

• ApeCoin (APE) price surged 50% in 24 hours, reaching $1.53
• ApeChain Layer-3 blockchain and cross-chain bridge launched
• APE now used for yield farming and as gas token on ApeChain
• APE market cap surpassed $1.1 billion
• Major liquidation event possible if price reaches $1.548

ApeCoin (APE), the governance token of the APE ecosystem, has experienced a significant price increase of 50% over the past 24 hours.

The token’s value rose from $1.21 to $1.53, marking its highest point in six months. This surge has pushed APE’s market capitalization above the $1.1 billion threshold.

The primary catalyst for this price rally appears to be the launch of ApeChain, a new Layer-3 blockchain within the APE ecosystem.

Alongside ApeChain, a cross-chain bridge was introduced, enabling smooth 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 expanded APE’s utility within the Yuga Labs ecosystem, the company behind well-known NFT collections such as the Bored Ape Yacht Club.

APE token holders can now participate in yield farming, allowing them to generate automatic returns on APE, ETH, and various stablecoins. This added functionality has increased the token’s appeal to investors and users alike.

APE has taken on a central role in the newly launched ApeChain. It serves as the native gas token for the network, meaning it is used to pay transaction fees.

Additionally, APE continues to be used for voting within the ApeCoin DAO and as a payment method for Yuga Labs’ products and real-world purchases.

ApeCoin recently implemented a smart contract update. This update integrated the LayerZero Omnichain Fungible Token (OFT) standard, allowing APE to function as a governance token for ApeCoin DAO across multiple blockchain networks.

🔵 @apecoin goes omnichain!

APE, the native gas token of ApeChain and a core asset in the @yugalabs ecosystem, is used for transaction fees, voting in ApeCoin DAO, and as a payment method in Yuga Labs titles and IRL purchases. It is now an OFT that can be seamlessly transferred… pic.twitter.com/azgIlAUW3B

— LayerZero (@LayerZero_Core) October 17, 2024

The crypto community has taken notice of APE’s recent performance. Several commentators on social media platform X (formerly Twitter) have suggested that the surge in APE’s price is partly due to investors buying the token out of fear of missing out on potential gains.

This phenomenon is not uncommon in the crypto world, especially when a token’s market cap crosses the $1 billion mark.

At this point, investors often expect to see a rapid rise in price, driven by increasing confidence in the token’s stability and decreased likelihood of market manipulation.

$APE
so many people must be in fomo watching this pump like a beast

the reason of pump is the launch of #ApeChain

if you feel like you have missed out

the real game starts when we see a monthly candle sustain above 1.99 $ pic.twitter.com/Igr9h1hbMl

— LA𝕏MAN (@Theblockvlog) October 21, 2024

However, it’s worth noting that technical indicators suggest caution may be warranted. 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 signals that a price correction could be imminent.

However, the behavior of meme coins like APE can sometimes defy these indicators, particularly when there is sustained interest from traders.

Looking at the immediate future, data from CoinGlass indicates that a key 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. This event could potentially lead to further price volatility.