The ApeCoin price recovery has hit a barrier as the initial momentum has waned. APE is trading at $14.22, which is in the same range as it has been in the past few days. This is about 64% below its all-time high. As a result, its market cap has stabilized at about $2.4 billion, making it the 60th biggest coin globally.
Concerns about APE remain
ApeCoin is the native token for the Bored Ape Yacht Club (BAYC), a leading NFT ecosystem started by Yuga Labs. The coin was launched less than two weeks ago when it recorded impressive returns. However, its price has dropped by over 64% from its all-time high, as I had predicted in my initial article on the coin.
Yuga Labs raised about $450 million to grow the NFT and metaverse industry shortly after launch. The company, which is now valued at over $4 billion, plans to become a major player in the metaverse. The APE coin will be the medium of exchange used in this universe. The same is true for its NFT marketplace, where users need to own the coin to buy all items. The developers also announced that all its merchandise would be bought using ApeCoin.
But there are concerns about how decentralized the platform is because of the vast power that Yuga Labs has. For example, according to The Verge, people who buy merchandise in the ecosystem simply give Yuga Labs their money. As a result, its power and control of the ecosystem will keep growing.
As part of ApeCoin’s tokenomics, the lab has been given 150 million tokens while its founders have 80 million. Further, the lab has also been given7 Bored Apes and ten mutant apes. These are substantial coins considering that it has a maximum supply of 1 billion ApeCoins. They will always have bigger voting power in the DAO than other holders.
Nexo launches APE rewards.
Meanwhile, Nexo became the first major platform to offer yield on ApeCoin. It promises to provide as much as 12% APR. Platinum holders will earn a maximum rate of 12%, while gold and silver holders will earn 10% and 8.7% returns, The base, which is the minimum rate, will offer a return of about 8%.In addition to these returns, Nexo will give a 0.5% cashback on each exchange transaction.
Other services that Nexo provides for its earning solutions are the ability to top up ApeCoin straight to the Nexo wallet without a single fee. One can also borrow against APE with as little as 0% rates. You can also trade APE with up to 3x leverage. At the start, the pairs that Nexo will offer are APE/BTC, APE/USDT, APE/USDC, APE/USDx, APE/EURx, and APE/GBPx.
ApeCoin price prediction
The ApeCoin price rose to a high of $15.58 on Monday, costing short-sellers approximately $4.5 million, according to Coinglass. Now, the coin has retreated and crossed the 25-day moving average. It has also retested the lower line of the modified Andrews Pitchfork indicator. It also seems like it has formed a double-top pattern at $15.54.
Therefore, there is a possibility that the APE coin will retreat as sellers target the 50% Fibonacci retracement level at $12.55. However, this view will be invalid if the coin moves above $15.55.