- ApeCoin’s upcoming token unlock is valued at a whopping $16.69 million.
- The APE token has faced bearish price action, losing half its market value in Q3 2023.
- Experts are divided over whether the unlock will exacerbate the downtrend or pave the way for a rebound.
As ApeCoin (APE) approaches its next token unlock, market participants ponder if the token’s bearish trajectory will persist or if a turnaround is on the horizon.
Details of the Impending APE Token Unlock
TokenUnlocks data reveals that ApeCoin’s next token unlock is imminent, with a scheduled date of October 17. On this day, a staggering 15.60 million new APE tokens will be introduced to the market by the ApeCoin DAO. This significant release marks the tenth such unlock this year, given that they occur on the seventeenth day of every month. The distribution of these tokens will be spread across five major entities, including Yuga Labs and its pioneering founder, the ApeCoin DAO Treasury, charity endeavors, and the early bird investors who backed the project before its official inception. Post-unlock, these tokens are projected to account for 4.23% of the total APE in circulation.
The Ongoing Dilemma: Will APE’s Bearish Streak Prolong?
Token unlocks typically raise eyebrows due to potential price drops, mainly when there’s a surge in token availability. Many fear that such an influx could tempt investors to cash out, inevitably driving prices downward. APE’s current market position further compounds these fears. Although the past month saw a mere 2.79% dip, the cumulative performance for 2023 paints a grim picture, with a 70% decline from its January 1 standing, according to data.
Hope on the Horizon: Positive Indications Amidst the Bearish Phase
Despite the prevalent apprehension, history suggests that token unlocks don’t always spell doom. Aptos serves as a testament, as its token value surged by 50% post its January unlock. Adding to the mix of potential positive outcomes, ApeCoin witnessed a promising proposal from Polygon’s co-founder, Sandeep Narwal. On October 11, he presented a plan to the ApeCoin DAO, introducing the idea of an exclusive layer 2 solution termed “ApeChain”. Currently operating on the Ethereum Network, APE’s integration with “ApeChain” could vastly enhance its scalability, potentially catalyzing its adoption rate and positively influencing its market value.
Current Market Snapshot of ApeCoin
At the time of writing, APE’s trading value stands at $1.06, marking a 1.47% uptick in the last 24 hours. However, its daily transaction volume has witnessed a decline of 16.96%, settling at $19.32 million.
Conclusion
While the impending token unlock for ApeCoin (APE) breeds uncertainty among market watchers, a blend of historical data and recent developments offers a glimmer of hope. The cryptocurrency realm remains unpredictable, but ApeCoin’s journey, with its potential integration with “ApeChain”, will be closely monitored by enthusiasts and skeptics alike. Only time will tell if the bearish phase will persist or if APE is on the brink of a resurgence.
