Every crypto project in the market is trying to survive in these uncertain times. Of course, this is not an issue for cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Shiba Inu because of their size. However, smaller tokens are having a harder time these days. Despite the uncertainty of the market, Yuga Labs decided to launch ApeCoin.
Considering the current fear in the market, one would think that nobody would invest in such a token. Well, millions invested in it. During the first 24 hours in the market, ApeCoin hit an all-time high of $40, with its market capitalization peaking at around $12 billion. But, why all this hype? Will APE reach new highs in 2022?
To begin with, let us take a look at the fundamentals of ApeCoin.
What is ApeCoin?
ApeCoin is an ERC-20 token, meaning that it operates in the Ethereum blockchain. This token was inspired by Bored Ape Yacht Club – the biggest NFT collection right now. In essence, APE is mainly a governance token but can also be utilized, making it a utility token as well. Therefore, ApeCoin is a governance and utility token. Its main use is for voting in ApeCoin DAO proposals.
Things are getting interesting at Yuga Labs, though. Just recently, Yuga Labs, the creators of BAYC, announced that they are acquiring CryptoPunks and MeeBits. They claim they did this to give IP rights to all CryptoPunks and MeeBits holders. After announcing these purchases, they released a teaser video to their upcoming Metaverse called the Otherside. So, ApeCoin will be the main currency used in this Metaverse, giving it another use case.
Some big news to share today: Yuga has acquired the CryptoPunks and Meebits collections from @LarvaLabs, and the first thing we’re doing is giving full commercial rights to the NFT holders. Just like we did for BAYC and MAYC owners. pic.twitter.com/lAIKKvoEDj
— Yuga Labs (@yugalabs) March 11, 2022
Having a whole Metaverse and a healthy ecosystem powered by a single token is quite something. Therefore, we believe that the future of ApeCoin is one of the brightest in the market. The foundations of this project are crazy strong and a single market correction is not enough to destroy them.
See you on the Otherside in April. Powered by @apecoin pic.twitter.com/1cnSk1CjXS
— Yuga Labs (@yugalabs) March 19, 2022
APE Price Forecast
ApeCoin surpassed the $40 milestone some hours after its debut. However, its price dumped minutes after hitting its current all-time high. This instilled fear in investors, however, such growth is often followed by a dump. Not only that but most of the holders that caused this dump got the tokens for free. You read that correctly, they got APE tokens for FREE. Each BAYC/MAYC/BAKC holder (HODLer) got thousands of free tokens. It is a logical assumption that they would sell their tokens immediately after APE made its debut.
What keeps this token surviving, however, is its enormous exposure. Every major exchange in the market listed APE immediately after its launch. This includes Binance, Coinbase, Kraken, Bybit, and several others. These exchanges contribute to the huge trading volume that ApeCoin currently has.
We at Crypto Academy believe that ApeCoin is likely to reach a trading value between $45-$80 sometime in 2022. All of this depends on two factors, the overall market performance and the supply of ApeCoin. Having a maximum supply of 1 billion and a circulating supply of 277 million means that more than 700 million tokens are yet to join the market. This means that as time passes by, more and more money needs to enter the market so that the token holds onto its price.
Check out our ApeCoin Price Prediction for March 2022.
Conclusion: Will ApeCoin Reach $100 in 2022?
So, will ApeCoin reach $100 in 2022? Well, we don’t think so. Our APE price forecast shows ApeCoin trading at a possible price of $50-$60 by the end of 2022, with a yearly high of $80. Therefore, we believe that ApeCoin is not likely to reach $100 in 2022.
Nevertheless, if the Otherside Metaverse launches sometime in 2022, ApeCoin could experience a surge in price; a surge that may potentially put it above the $100 milestone for this year. Yet, we believe that ApeCoin is likely to do so in the upcoming years.
At the time of writing, ApeCoin is trading at a price of $13.95 and has a market capitalization of $3.8 billion. Moreover, it has a trading volume of $1.4 billion, meaning that it is very liquid.
Takeaways
- The current cryptocurrency market is uncertain and there is a lot of fear amongst investors.
- Yuga Labs, however, did not take these things into consideration and successfully launched the ApeCoin token.
- ApeCoin’s ticker is APE. This token is an ERC-20 token operating on Ethereum.
- ApeCoin is a governance and utility token. Furthermore, this token is going to power the upcoming Metaverse called the Otherside.
- Our APE price forecast shows ApeCoin with a possible yearly high of $80. This depends on several factors, however. If the market does not turn that bullish, ApeCoin might be left with a price of $40 by the end of 2022.
- According to our forecast, it is very unlikely for APE to reach $100 in 2022.