Will ApeCoin’s ‘influential NFTs’ halt APE’s price plummet?
- With a recent proposal, ApeCoin DAO is seeking the establishment of a sister DAO to acquire “influential NFTs.”
- APE’s price has dropped by almost 30% in the last month as demand craters.
A proposal to establish a “sister DAO” and allocate 750,000 APE tokens to it, in a bid to acquire influential non-fungible tokens (NFTs), was being voted on by the ApeCoin DAO community. It had an approval rate of 65% at press time, snapshot data revealed.
How much are 1,10,100 APEs worth today?
The proposal, first published in July, sought an initial allocation of 750,000 APE tokens from the protocol’s treasury to acquire “culturally significant” NFTs. These digital collectibles would be held in a community-run vault, with decision-making power resting in the hands of APE holders.
As contained in the proposal:
“The objective of this proposal is to position ApeCoin as the web3 culture token to power the broader web3 ecosystem”
The proposed list includes eight Bored Ape Yacht Club [BAYC], 12 Mutant Ape Yacht Club [MAYC], 15 Bored Ape Kennel Club, 15 Mocaverse, 15 World of Women, 15 Cool Cats, 15 Otherdeed, 12 Pudgy Penguins, and 20 Sandbox [SAND] NFTs.
As of this writing, 4.4 million APE tokens have been deployed toward voting in favor of the proposal.
APEs have little demand for the metaverse-based token
Exchanging hands at a one-month low of $1.13, APE’s value has plummeted by 27% in the past thirty days due to a shortfall in daily active address count and new demand for the token. After attaining their respective peaks on 17 August, these have dwindled significantly.
As of 18 September, only 1452 addresses completed transactions that involved APE. This represented a 94% decline from the 17,000 addresses that traded the alt on 17 August.
The count of new addresses created to trade the alt was less than 250 addresses on 18 September, data from Santiment showed. Since 17 August, new demand for APE has dropped by 98%.
Amongst the token’s spot traders, daily accumulation has slowed. Key momentum indicators observed on a 24-hour chart were spotted at regions that suggested that the altcoin would soon become “oversold.”
For example, APE’s Chaikin Money Flow (CMF) trended downward and was positioned below its center line at -0.17. It is trite to note that a negative CMF value signals significant market bearishness, with the consistent removal of liquidity needed to induce a price rally.
Realistic or not, here’s APE’s market cap in BTC’s terms
Likewise, the K line (blue) of the altcoin’s Stochastic RSI indicator inched close to the 20% level. The Stochastic RSI indicator measures momentum and identifies overbought and oversold conditions in the market.
A Stochastic RSI value below 20 typically suggests increased distribution. It shows that an asset has been oversold, and until sentiment improves, the price will continue to plummet.