ApeCoin’s arrival was pioneering for the NFT community because it was the first-ever native token to an NFT collection. But what it brought along with it was rather unexpected.
ApeCoin = Dogecoin?
4 May was a rather eventful day for APE holders as the coin soared by 13% after the last 24 hours of Elon Musk’s tweet to trade at $16. APE’s reaction was in response to the Twitter owner changing his profile picture to a set of BAYC NFTs.
ApeCoin price action | Source: TradingView – AMBCrypto
Now Musk’s influence in the crypto space is well known, in fact, the announcement made by him and his company Tesla about suspending the acceptance of Bitcoin for payment was the trigger behind May 2021 crash.
Furthermore, he singlehandedly made Dogecoin mainstream and continues to have a huge hand in promoting and developing it. He even made DOGE a valid means of payment for Tesla.
Dogecoin is now famous for the power that the ‘DOGEfather’ holds on the altcoin.
But with, the growing interest in NFTs and Elon’s absolute control over Twitter made his cryptic move about the profile picture a trigger for a rally.
Regardless, as mentioned before, APE’s excessive volatility is already a concern and knowing that it’s vulnerable to influence makes it worse.
As it is the native token of the BAYC collection, it is already susceptible to price swings from any development that occurs with the NFTs.
At the moment, the Bored Ape Yacht Club collection’s all-time trading volume is around $1.6 billion, inching close to $2 billion, which will make it only the second collection after CryptoPunks has traded more than $2 billion in volume.
In addition to that, APE whales have been very active over the last few days. On 5 May transactions worth more than $1 million almost touched 100.
ApeCoin whales transaction | Source: Santiment – AMBCrypto
This random spike in their activity and popularity can cause investors to act thoughtlessly, which might not be in their favor. It’s important to note that APE holders are not very content at the moment.
ApeCoin investor sentiment | Source: Santiment – AMBCrypto
Thus, it’s crucial for ApeCoin to find some semblance of stability before it truly becomes the next Dogecoin.
