The price of ApeCoin (APE), the governance crypto asset of the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) project, has fallen considerably over the past seven days. He decrease in the price of the asset was 16%. Last Friday the price of APE was USD 1.33 and currently it is USD 1.10, as seen in the graph below:
ApeCoin fell from $1.33 to $1.10 in seven days. Source CoinGecko. The drop in the price of this token goes hand in hand with the decrease in sales of BAYC collectibles. The minimum sale price of these NFTs fell 12%, on average, in the same period. Seven days ago they were valued at USD 44,000 and fell to USD 39,000, according to data from CoinGecko. Bored Ape Yatch Club is not an isolated case. Generally speaking, NFT trading volume is at a minimum, after the “NFT-mania” of 2021-2022. The following image shows the evolution of this volume on the Ethereum network, which is where the Bored Ape Yatch Club collection “lives.”
NFT trading has fallen to all-time lows on Ethereum. Source: The Block. Last July, CriptoNoticias reported that the prices of “blue chip” or top-level digital collectible projects fell 83% from their all-time high. The NFTs of the BAYC collection fall into that category. Not only the disinterest in collectible tokens is responsible for the fall of the ApeCoin token. Another reason that leads to the decline in APE is the imminent unlocking of 40 million of these tokens by the developers, according to the TokenUnlocks explorer. Those tokens that will be unlocked represent 10% of the current circulation, which is close to 400 million APE. The tokens They will be released tomorrow, September 16, and will be distributed among founders of the Yuga Labs company, creators of the NFTs and other members of the community. When an event of these characteristics occurs, the supply of an asset increases. If it is not accompanied by an equal or greater increase in demand, then, the price falls due to the simple law of supply and demand. It can be seen that in the future, there will be more unlock events. The total supply of APE tokens will increase by close to 100% between now and 2025, when distribution ends.
APE Token Distribution Scheme – Source: https://token.unlocks.app/apecoin Yuga Labs has made efforts to reignite market interest in its NFTs. A few days ago he announced a timeline for the nomination process in the delegate elections of the organization’s marketing communications and metaverses working group. They have also made changes about the initiatives, policies, plugins and procedures that must be carried out by facilitators (in charge of moderating the community), within Yuga Labs. Facilitators will have to address artificial accounts, identify them and counteract this activity. Despite all these changes that are positive for the project, The price of the token and the NFTs fails to recover and continues to decline.
