ApeCoin: APE’s Price Dips Despite Surges in These Metrics

  • ApeCoin launched staking on December 6, and the project unlocked rewards on December 12.
  • However, the APE price failed to reflect the excitement of the staking launch.

ApeCoin’s staking launch on November 6 delighted APE holders as they contemplated future benefits. Moreover, the staking guidelines indicated that staking rewards kick-started on December 12. Nonetheless, APE prices seem uncorrelated with the on-chain developments, despite the excitement surrounding the staking launch.

ApeCoin Staking Begins

Market players deposited tokens worth $30 million in the contract within a day of the ApeCoin Foundation opening APE staking. The approved staking contract had received APE worth about $32 million in 24 hours, coupled with massive amounts of Mutant Ape (MAYC) and Bored Ape (BAYC) non-fungible tokens (NFTs).

Reports suggested that NFT investors dell for a recognizable flaw within the staking design. When investors staked APE tokens and Bore Ape NFT, they formed a link between these assets within the staking contract. Meanwhile, the link prevented the user from selling the non-fungible token without selling the attached assets.

Monthly Active Addresses Increase

The APE project introduced the staking functionality. And as some may have anticipated, it boosted some metrics. Santiment confirmed this by the active addresses on ApeCoin. It discovered that active wallets saw a dramatic uptick within the past week. The metric climbed to the highs of recent months, hitting 16,000.

APE Price on Downtrends

Meanwhile, the discussed developments hadn’t impacted the token’s cost. The alternative coin gained approximately 6% during the staking launch (December 6). However, the lack of notable conflict between buy and sell pressure ensured miner price changes.

APE price increased by 12.49% over the past three days but has surrendered more than 7% by this publication. The alt traded at around $4 at this writing.

MVRV Still Upside

The 30d MVRV shows some market participants remain profitable despite APE’s clear price drop. Santiment data indicated that investors who bought the altcoin over the past month remained in the black. Nonetheless, profits were fading rapidly, and the asset could turn to losses at any time. MVRV change would authorize the disparity between the token’s value and on-chain metrics.

Editorial credit: David Esser / shutterstock.com