APEUSD ApeCoin

ApeCoin, a decentralized cryptocurrency that operates on the Ethereum blockchain, recently announced a 1-month linear unlock of 4% of its total token supply. The unlock event could cause significant price volatility for the token, as some investors may sell them in anticipation of a price drop. This could lead to a sharp decline in the coin’s value. Related Reading: Galaxy Digital CEO Recommends Buying Crypto And Bitcoin Amid US Credit Crunch What’s Ahead For The ApeCoin Project? According to on-chain research firm Unlocks Calendar, smart money wallets have reduced their allocation balance in the cryptocurrency since their launch. However, in the last 7 days, there have been transactions where these wallets have increased their allocation balance, breaking the previous trend. This type of transaction activity can indicate a change in market sentiment or investor behavior, noting that smart money wallets anticipate a price increase ahead of unlocking ApeCoin’s 4% total token supply. According to Unlock Calendar, the launch of ApeCoin’s staking program, ApeStake.io, could contribute to the decline in ApeCoin balances on centralized exchanges since December 2022. However, a positive sign for the research firm is that this could also represent a general attitude of investors to hold the token instead of dumping it. Previously, on February 16th, 4.3 million Ape coins were unlocked, worth about 0.7% of the total supply. For investors, this could hint at the price action the coin may suffer in the coming days, according to a blog post by trading platform Gate.io.  As a result of the February unlocks, the price fell from $5.70 to $5.15 on February 17, just one day after the unlock, representing a 7% drop in value. In addition, the token’s price has continued to fall from the $5 level, and with the upcoming unlock, APE investors can expect higher volatility and lower prices. The next unlock event will take place in September 2023. However, many more ApeCoins will be unlocked periodically until 2026. So why is the protocol unlocking these tokens now? The Reason Behind ApeCoin’s Unlock  The unlocking of tokens increases the cryptocurrency’s circulating supply, which can cause its price to plummet. However, many investors may consider holding onto their tokens given ApeCoin’s staking program, which incentivizes its users to hold the cryptocurrency for some time in exchange for rewards. This may make them more attractive to investors than selling them on exchanges, which could reduce the amount of ApeCoins available on centralized exchanges. The decision to release a portion of the total supply of tokens could be driven by the need to provide market liquidity, fund development, and expand the project. However, as noted above, this may lead to massive selling pressure on Ape’s tokens and potentially drive down the price. Over the past 24 hours, ApeCoin (APE) has increased its price by 3.46%. On March 14, 2023, the cryptocurrency reached a 24-hour high of $4.66, while its 24-hour low was $4.022. The cryptocurrency has a supply of 368.59 million APE coins in circulation, with a maximum supply of 1 billion APE coins. APE is currently ranked 40th in terms of market capitalization. Related Reading: Bitcoin Leverage Ratio Plunges, Here’s What This Means Featured image from Unsplash, chart from TradingView.com