ApeCoin (APE) Set For Upcoming Token Unlock, Bearish Pressure To Worsen?
15 Oktober 2023 - 10:00PM
NEWSBTC
ApeCoin (APE) will undergo a token unlock valued at $16.69 million.
This development comes amidst the token’s bearish price action,
which has led to it losing half its market value in Q3 2023.
Related Reading: Apecoin Weakens Grip In Last 30 Days – Should
Investors Get Worried? 15.60 Million ApeCoin (APE) Set To Flood The
Market Next Week According to data from TokenUnlocks, ApeCoin’s
next token unlock is set to occur on October 17, during which the
ApeCoin DAO will release 15.60 million new APE tokens into
circulation. This will mark the tenth APE token unlock in
2023, as this event occurs on the seventeenth day of every month.
Based on more information from TokenUnlocks, the newly released APE
coins will be allocated to five major parties. These include
Yuga Labs and its founder, the ApeCoin DAO Treasury, charity, and
the project’s launch contributors, i.e., early investors in the
token before its official launch. Upon release, tokens are expected
to form 4.23% of APE’s circulating supply. ApeCoin was launched in
March 2022, with a maximum supply of 1 billion tokens, of which
54.25% are currently unlocked. However, only 367.59 million APE are
part of the token’s circulating supply. APE’s Bearish Form To
Continue? Generally, token unlocks are usually accompanied by
concerns of an incoming downward trend. This is because the
sudden availability of large amounts of tokens may prompt some
investors to sell and take profit, which puts downward pressure on
the said token’s price. As earlier stated, APE already finds itself
stuck in a long bearish market. Although the token is only down by
2.79% in the last month, its overall performance in 2023 has been
largely negative. Related Reading: Apecoin Weakens Grip In Last 30
Days – Should Investors Get Worried? According to data from
CoinMarketCap, APE has lost 70% of its value in 2023 compared to
its market price as of January 1. APE could soon record more
losses with the token unlock set for next week. However, that may
not be the case. Based on historical data, token unlocks do not
always result in a price loss, as notably seen with Aptos in
January, in which the APT gained by 50% following its monthly token
release. Moreover, there have been some interesting
developments surrounding ApeCoin in the last week. On October 11,
Polygon co-founder Sandeep Narwal proposed on the ApeCoin DAO the
development of an exclusive layer 2 solution for ApeCoin, known as
“ApeChain.” Currently, APE is based on the Ethereum Network, and it
functions as the governance asset of the APE ecosystem, which
consists of NFT projects launched by Yuga Labs, such as the Bored
Ape Yacht Club (BAYC). However, creating ApeChain could
enable Apecoin to achieve a higher level of scalability, which, in
turn, could positively affect its adoption and market price. APE
trades at $1.06 when writing, with a 1.47% gain in the last day.
Meanwhile, the token’s daily volume is down by 16.96%, valued at
$19.32 million. APE trading at $1.060 on the hourly chart | Source:
APEUSDT chart on Tradingview.com Featured image from
Digicentralized, chart from Tradingview
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