ApeCoin surges to highest value since April as ApeChain goes live

ApeCoin (APE), the ERC-20 token associated with Yuga Labs and the Bored Ape Yacht Club (BAYC) ecosystem, has seen its value soar over the weekend. It more than doubled in price to reach $1.75 on Monday, a high not seen since April. This surge comes following the launch of ApeChain, a much-anticipated blockchain network developed by Yuga Labs, the creators of BAYC.

What is ApeChain?

The ApeCoin DAO voted in favour of creating ApeChain earlier this year, and its launch on Sunday has generated significant buzz among investors and users alike. 

ApeChain is a Layer-3 network built on Arbitrum One and is fully compatible with the APE token. It allows for a range of decentralised applications, including the minting of non-fungible tokens (NFTs) and trading, all while improving the overall user experience. 

Essentially, ApeChain unlocks the potential of ApeCoin for all kinds of blockchain applications, expanding the token's use cases. 

For many ApeCoin holders, this upgrade couldn't come too soon. We're a long way from the heady days of 2021 when celebrities and influencers couldn't throw enough apes in front of our faces. Attempts to expand the Bored Ape brand through cartoons and games came and went without significantly impacting the crypto landscape. Now, It's time for Bored Ape to step up with a new selling point.

Staking yield brings new passive income opportunities and investor interest to ApeCoin

A key feature driving ApeCoin's recent rally is the introduction of native staking yield. ApeChain's bridges went live on Sunday, enabling users to transfer tokens to ApeChain and automatically start earning staking yields on APE, Ethereum (ETH), and stablecoins. 

Staking involves locking up assets within the network in exchange for rewards, similar to investing in fixed-income securities.

ApeChain also introduces automatic staking yield, which can be an attractive draw for investors. The new automatic yield mode allows users to earn passive income by staking their APE tokens. The rewards from staking are then reinvested automatically. 

By putting their staking activity on automatic, APE holders can set up a passive income stream in a low-maintenance, user-friendly way, letting the system work on its own to maximise returns over time.

The staking system is part of a broader effort to increase the utility of ApeCoin by encouraging greater engagement with the token through staking pools, gaming activities, and other features. ApeCoin's ecosystem also plans to support other yield-generating cryptocurrencies in the future to attract a wider audience.

LayerZero launch boosts ApeCoin utility

Another factor contributing to ApeCoin's rise is the integration of LayerZero on ApeChain's mainnet. LayerZero is an interoperability protocol that enables decentralised applications to move data across multiple blockchains, further expanding ApeCoin's utility.

With the integration of LayerZero's omnichain fungible token standard, ApeCoin can now facilitate smooth cross-chain transfers. This feature enhances scalability and ensures efficient transactions across different blockchains, adding another layer of utility for APE holders.

Market reaction and price movements

At the time of writing on 22 October, APE experienced a significant pullback, undoing some of the progress it had made over the previous five days. The token dropped to $1.40, marking a 20% fall from its weekly high. However, even after this drop, ApeCoin remains 200% above its August low, with APE forming a 'spinning top' pattern on trading charts.

This retracement could be due to traders' profit-taking and the gravitational pull of a wider crypto market downturn. Bitcoin (BTC) retreated to $67,000 after hitting $69,300 on 21 October. Similarly, the total market capitalisation of cryptocurrencies dropped by 3%, reaching $2.43 trillion.

Whether ApeCoin manages to reclaim $1.75 or not, this week's action was a clear indicator that there are profit opportunities related to Yuga Labs' progress and innovations related to APE and its ecosystem. Crypto traders should watch ApeCoin with interest and keep an eye out for new projects built on ApeChain. As recognised crypto innovators and skilled marketers who captured the pop culture zeitgeist once before, there's potential for another craze coming out of Yuga Labs' creations.

StormGain: the ultimate platform for trading ApeCoin and more

As the ApeCoin ecosystem expands, it's essential to have the right platform to capitalise on these opportunities. StormGain offers an ideal solution for both new and seasoned traders looking to easily trade APE and other cryptocurrencies.

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