After reaching a high of over $27.75 on 28 April on Coinbase, ApeCoin (APE) has since lost more than 86% of its value. Although the entire crypto market has been bearish since the start of the year, ApeCoin has suffered a particularly steep drop. This has got investors and traders worried that it may be just another bubble but there are 3 reasons why this is not the case.
ApeCoin and Ethereum 2.0
Last week, the ApeCoin community took a vote on whether to stay on the Ethereum blockchain or migrate to its own blockchain. Of the 7.1 million APE used in the vote, 3.8 million votes were in favour of staying on Ethereum while 3.3 million voted to migrate. While close, the decision will keep ApeCoin on Ethereum for the next 3 months before another vote can be held.
During that time, the Ethereum blockchain is expected to have migrated to a PoS system, which is expected to bring a lot of improvements to the network. So far, ApeCoin has been suffering from problems such as transaction speeds and gas fees, but the Eth 2.0 upgrade could fix all that.
ApeCoin is a favourite among whales
APE is one of the most actively traded crypto among the 5,000 biggest Ethereum addresses and is one of the top holdings by the top 100 Ethereum whales according to WhaleStats. Recently, these whales have been accumulating even more APE, showing that there is still confidence in the future of the token.
Bored Ape Yacht Club (BAYC) is still popular
BAYC ranks 5th among the top 10 NFT collections right now and its popularity continues to grow. Today, the average price of one Bored Ape Yacht Club NFT is $134.6k and there are 6,419 Bored Ape Yacht Club owners. This popularity has spilled over to the real world where holders meet to trade and show off their collections.