These are tough times for the Bored Ape Yacht Club (BAYC) cryptocurrency, which keeps plunging. Yet BAYC’s collection of NFTs has stabilised. So how can we explain the fall in the cryptocurrency of cryptos’ most famous monkeys?
The fall of Apecoin (APE) continues towards new historic lows
$20, $15, $5… As low as $1.10 overnight. Apecoin’s fall has seemed unstoppable for months. Yet when it was launched, the cryptocurrency was the flagship of the Bored Ape Yacht Club (BAYC) ecosystem. But after a breakthrough above $27, the APE has fallen almost continuously:
Evolution of the APE price since its launch
The Apecoin is exploring new all-time lows, alongside an ecosystem of NFTs that has taken a beating of late. The big collections have unanimously seen their average prices fall, and trading volumes are not what they were a few months ago either. Although the Bored Apes collection has stabilised, it has still lost a lot of ground.
Waiting for Otherside and an environment not conducive to risk-taking
The Apecoin is therefore suffering from a general context, and a diversion of investors who have been less keen on NFTs since the beginning of the year. The other reason is that enthusiasm for Apecoin was largely based on the possible release of Otherside, the metaverse of Bored Ape Yacht Coin.
But Otherside, despite the initial enthusiasm, has failed at this stage to attract the promised crowds, especially as places are currently limited. Earlier this year, however, a collaboration with Gucci showed that Yuga Labs intended to continue building on the exclusivity of its brand. Since then, however, there has been little news. We do know, however, that the company has acquired the start-up Roar Studios, in order to accelerate the development of its metaverse.
All these factors combine to explain the sharp fall in Apecoin. Will the BAYC cryptocurrency continue its string of lows, or will it manage to climb back up the slope? Interest in the NFT collection, and the associated metaverse, will partly decide.
