The Bored Apes Yacht Club (BAYC) collection was one of the loudest in the NFT market in 2021. Now, its thematic token apecoin (APE) wants to repeat the success.
Having surged by over 50% over the past week, the token is now the most valuable metaverse asset with a market capitalization of over $6.2 billion at the time of writing. Even Decentraland with its MANA token has barely $3 billion of market cap. Since launch, APE surged by over 2,000%, pumping in a moment up to $24. Now, you might be thinking:
While it's hard to tell what is the exact reason behind that mind-blowing surge, there are some key moments that might have played their part in token pricing:
Access to liquidity
In a matter of days after Yuga Labs, the team behind BAYC, announced the ApeCoin project, the token was listed on a set of top cryptocurrency exchanges. As of press time, users can buy APE on Coinbase, Binance, Kraken, FTX, Gemini, and even Uniswap, a decentralized crypto exchange.
Such big support is crucial for a token's success as it gives users more ways to access the asset. The formula here is pretty simple:
more access = more money and more money = more value
And, obviously, this support isn't cheap. According to Autonomous Research, listing a token on a cryptocurrency exchange can cost over $2 million.
But such a full-scale listing campaign almost immediately paid off as it had affected the token's trading volume significantly. For instance, on the second day of trades, APE registered over $9.3 billion of the trading volume. Someone had to pay for it, right? But who? We still don't really know.
While officially it remains unclear who backed ApeCoin, reports say that VC tycoons like a16z and Animoca Brands supported the project and got a big stake from the token's supply. It's also worth noting that a16z's top managers backed Curated, an NFT fund, which aims to buy "blue chip" digital collectibles like Bored Apes.
What is more, ApeCoin DAO's board includes big names like Alexis Ohanian (Reddit), Amy Wu (FTX), and others. Their financial interest in the project remains undisclosed so far.
OpenSea support & metaverse ambitions
Money opens all doors, especially in the crypto world. And it seems there're really big investors behind the project as even OpeSea, one of the largest NFT marketplaces, added support for APE as payment method.
This is big as the marketplace has been very selective in assets it support. As of press time, in addition to APE, the platform also supports ether (ETH), wrapped ether (WETH), solana (SOL), USD coin (USDC), and DAI. No bitcoin (BTC) or even dogecoin (DOGE) as you might have noticed.
And, if all the above-mentioned support didn't impress you, Yuga Labs announced Otherside, a metaverse game similar to Roblox or The Sandbox in the Bored Apes universe. According to reports, the firm is set to sell over $300 million worth of virtual land plots through... you guessed it — APE.