In Q1 2024, the growth of ApeCoin (APE), an ERC-20 token that manages the ApeCoin DAO, was quite impressive.
The essential data indicated noticeable advancement during the past four quarters, leading to an increase in APE‘s market value, token price, and trading activity. This continuous progression underscores the company’s successive periods of expansion.
ApeCoin Regains Unicorn Status
According to Messari’s latest findings, APE‘s recovery stood out significantly more than the overall crypto market, which expanded by 53% between quarters, and Bitcoin‘s market value, which increased by 63% during the same period.
In the second quarter of 2023, APE‘s market capitalization dropped below $1 billion. However, by the end of the first quarter in 2024, its market cap had bounced back and exceeded $1 billion once more, reaching a value of $1.3 billion. This represented a significant growth of 31% compared to the previous quarter. The report attributes some of this increase to a quarter-over-quarter rise in APE’s token price of 21%.
The report brought attention to the release of 46.8 million APE tokens from the total supply, which boosted the market value. Yet, this token release and the $16.5 million earmarked for governance expenses might have put downward pressure on the asset during the quarter.
In Q1 2024, an additional 46.8 million tokens of the ApeCoin (APE) were made accessible. Of this amount, 22 million tokens went to the Decentralized Autonomous Organization (DAO) Treasury, while 24.8 million tokens were allocated to non-DAO entities. The DAO intends to utilize these tokens to finance approved projects through issuance or sale. Non-DAO entities, on the other hand, have the freedom to sell their unlocked tokens once they are released.
In spite of the selling pressure caused by releasing and setting aside 8.3 million APE tokens, leading to a rise in supply, the price of APE experienced a notable 21% increase quarter-over-quarter. This price growth suggests a larger number of buy orders being placed, putting pressure on the asset to move upward.
In the report, we additionally examined trading behavior, bringing attention to the significant influence of major traders, who represented 63% of the total trade volume during Q1. The average transaction size on decentralized exchanges (DEXs) experienced a noteworthy surge of 28% compared to the previous quarter, indicating increased activity from larger-volume traders.
In addition, the quantity of APE tokens transferred increased by 12% compared to the previous quarter. This growth may be attributed to a surge in transactions resulting from the approval of several governance proposals during the quarter.
APE’s Journey Forward
Moving forward, the capabilities of APE will grow with the execution of recently approved governance plans. Proposal AIP-381 intends to establish game-centric Decentralized Autonomous Organizations (DAOs) and vaults, granting APE token owners exclusive membership and opportunities for governance involvement as well as access to unique ecosystem resources.
Moreover, ApeChain chose Horizen Labs to create a blockchain where APE serves as the gas currency and may possibly accommodate other applications related to digital assets.
Despite more people joining the APE community, the pace at which new members were coming in didn’t pick up, as per Messari’s findings, even with two successive price hikes.
As a solution, the ApeCoin Decentralized Autonomous Organization (DAO) entered into a branding collaboration with a Formula One racing squad, along with other strategies, to entice potential new token owners in the long run.
The ApeCoin Decentralized Autonomous Organization (DAO) has been actively engaging in governance decisions, giving the green light for constructing ApeChain using Arbitrum’s technology framework and broadening the functionality of the APE token within GameFi DAOs and vaults.
The number of votes per proposal grew by 19% compared to the previous quarter, signaling a rise in community involvement. The ApeCoin Decentralized Autonomous Organization intends to shift more voting procedures onto the blockchain, fostering greater decentralization and encouraging broader governance participation.
Although APE saw expansion in Q1 as a whole, the token has recently taken a hit and followed the market’s downturn. In the last month alone, APE experienced a substantial decrease of approximately 41%, resulting in its current value of $1.148.
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2024-04-18 01:16