The launch of its cross-network bridge and other developments within the ecosystem have propelled ApeCoin’s price to soar by 50% in the past 24 hours.
ApeCoin (APE), the governance token of the APE ecosystem, has reached its highest point in six months, surging from $1.21 to $1.53. Furthermore, its market capitalization has surpassed $1.1 billion.
The recent surge in ApeCoin’s price can be primarily attributed to the introduction of ApeChain, a new Layer-3 blockchain. This cross-chain bridge allows for seamless transfers of APE, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) between ApeChain, Ethereum (ETH), and Arbitrum (ARB) networks.
With the launch of ApeChain, APE’s utility has expanded within the Yuga Labs ecosystem, the company responsible for popular NFT collections such as the Bored Ape Yacht Club. Holders of APE tokens can now engage in yield farming, generating automatic returns on APE, ETH, and stablecoins, thereby enhancing the token’s usability.
APE plays a vital role as the native gas token of ApeChain. It is used to pay transaction fees, participate in voting within ApeCoin DAO, and serve as a payment method for Yuga Labs’ titles and real-world purchases.
In addition to these developments, ApeCoin has recently implemented a smart contract update, integrating the LayerZero Omnichain Fungible Token (OFT) standard. This update enables APE to function as a governance token for ApeCoin DAO and facilitates transaction fees across multiple chains.
Market analysts have observed that the surge in APE’s price is driven by investors’ fear of missing out on significant gains. When a meme coin reaches a market capitalization of $1 billion, investors anticipate a parabolic rise in its price, as the token gains credibility and becomes less susceptible to manipulation or rug pulls.
The Relative Strength Index and Stochastic RSI for APE are currently above overbought levels, indicating a potential correction on the horizon. However, sustained interest from traders can help push meme coin prices higher, as previously witnessed with ApeCoin’s competitors like POPCAT and WIF.
According to data from CoinGlass, the key liquidation levels for APE are at $1.548. Many intraday traders are leveraging around this level. If APE rises to $1.548, approximately $2.59 million in short positions could be liquidated.