ApeCoin Q1 2024 Performance: Market Cap And Token Price Skyrocket – Key Findings Inside
18 April 2024 - 12:00AM
NEWSBTC
ApeCoin (APE), the ERC-20 token governing the ApeCoin Decentralized
Autonomous Organization (DAO), showed notable growth in the first
quarter (Q1) of 2024. Key metrics showed significant
progress, driving APE’s market capitalization, token price, and
trading volume quarter-over-quarter (QoQ), demonstrating
consecutive quarters of growth. ApeCoin Regains Unicorn Status As
noted in a recent report by Messari, APE’s rebound was particularly
noteworthy compared to the broader cryptocurrency market, which
grew 53% quarter over quarter, and Bitcoin’s market cap, which grew
63% quarter over quarter. After briefly dipping below $1
billion in Q2 2023, APE’s market cap regained unicorn status,
ending Q1 2024 at $1.3 billion, representing 31% growth. According
to the report, this market value increase was partly driven by
a 21% QoQ rise in APE’s token price. Related Reading: Crypto
Analyst Says Don’t Buy Altcoins Just Yet – Here’s Why The report
also highlighted the unlock of 46.8 million APE tokens from the
circulating supply, contributing to the market cap growth. However,
this unlocks, and the $16.5 million allocated to governance
expenditures potentially created sell pressure on the asset
throughout the quarter. Another 46.8 million APE tokens were
unlocked in Q1 2024, with 22 million APE going to the DAO Treasury
and 24.8 million APE distributed to non-DAO entities. The DAO plans
to issue or sell APE to fund approved proposals, while non-DAO
entities are free to sell once their funds are unlocked. Despite
the additional sell pressure resulting from unlocking and
committing 8.3 million APE tokens, the price of APE still saw a
substantial 21% QoQ increase. This surge in price indicated a
higher volume of buy orders, exerting upward pressure on the asset.
The report also analyzed trading activity, highlighting the
dominance of large-volume traders (whales and sharks), who
accounted for 63% of the trade volume in Q1. The average
decentralized exchange (DEX) swap size increased by 28% QoQ,
reflecting the heightened activity among larger-volume
traders. Furthermore, the transfer volume of APE tokens grew
by 12% QoQ, potentially driven by significant transactions
following the approval of various governance proposals throughout
the quarter. APE’s Journey Forward Looking ahead, APE’s utility is
set to expand by implementing recently passed governance proposals.
AIP-381 aims to build game-focused DAOs and vaults accessible
exclusively to APE holders, allowing them to participate in
governance and access specific ecosystem assets.
Additionally, the ApeChain proposal selected Horizen Labs to build
a blockchain that utilizes APE as a gas token and potentially
supports other asset-related applications. However, while APE
continued to attract new holders, the growth rate of new APE
holders did not accelerate despite two consecutive quarters of
price increases, according to Messari. To address this,
ApeCoin DAO formed a branding partnership with a Formula One racing
team, among other initiatives, to attract new holders in the
future. Related Reading: Crypto Analyst Unveils Top 10 BTCfi
Altcoins Post-Halving On the other hand, the ApeCoin DAO has been
actively voting on new governance proposals, approving the building
of ApeChain on the Arbitrum technology stack and expanding the
utility of the APE token to GameFi DAOs and vaults. The
average votes per proposal increased by 19% QoQ, indicating growing
community engagement. ApeCoin DAO plans to move the voting process
on-chain more, promoting decentralization and participation in
governance. Despite the overall growth witnessed by APE in Q1, the
token has recently experienced a significant downturn, aligning
with the downward trend in the overall market. APE has suffered a
notable decline of over 41% in the past month, leading to its
current trading price of $1.148. Featured image from Shutterstock,
chart from TradingView.com
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