During March, when ApeCoin was introduced, the Ethereum-based coin from Yuga Labs’ expanding the BAYC network sent both the Non-Fungible Token and cryptocurrency markets into a craze. ApeCoin is plummeting much faster than some other videogame and metaverse-based currencies as a product of the present marketplace distress.
ApeCoin reached an all-time trough of $3.10 per coin over 24 hours, as per CoinGecko data. The value has slightly climbed to $3.50 at the time of publishing; however, it has still managed to drop 37% in the seven days that have just passed.
The crypto market in its entirety is down about three percent now, and other virtual world and game currencies have taken a pretty big hit as well—though not as much as ApeCoin. Another thing to consider is the fact that the SAND coin used in the Sandbox dropped seven percent to 83 cents, while GMT tokens in the move-to-earn game have plummeted over seven percent to more or less $0.60.
When taking a broader perspective, ApeCoin’s current issues are much clearer. As per CoinGecko, the asset has dropped 65% of its worth in the past month. When compared to SAND, which has plummeted by 42%, and Decentraland’s MANA coin, which has also crashed by 39%, this is a significant amount. During the exact same period, Bitcoin lost around 32% of its overall market value, whereas Ether dropped by about 48%.
The connected BAYC NFTs have lost a considerable amount of worth in recent times as well. Furthermore, the floor value or price for the most difficult NFT to acquire on a private market for an Ape has plummeted by upwards of 54% in the previous month to around $90,000 (76 ETH).
This drop is even more striking when looking at the BAYC’s record peak price of around $430,000 (152 ETH) on April 29, prior to the emergence of metaverse NFT estates for Yuga’s planned Otherside digital world videogame. ApeCoin would be used in future console games and Web3 apps, as well as other projects.
An NFT is used to prove ownership of digital products such as photos, art, and memorabilia. The BAYC is one of the most prominent Ethereum NFT endeavors, with more than $2.2 billion in total trade capacity to date, though transactions and values have both dropped rapidly in the recent periods due to marketplace volatility.
Holders of BAYC and MAYC tokens were eligible to receive loads of free APE when the coin launched in March. The cost of APE soared to $26 towards the end of April in anticipation of the Otherside sale but quickly dropped to the $14 range in the moments following. The cryptocurrency marketplace tanked briefly afterward, carrying APE along with it.
ApeCoin owners can vote on administration ideas with their coins, and the network has recently deliberated as to whether APE must continue to stay in the Ether network. Avalanche, a competitor network, attempted to incentivize APE owners, but the group ultimately chose to stay within the Ether ecosystem.
With the original turbulence that faced gaming-based coins being a factor, as well as the recent crash of both crypto and NFT markets, it seems unlikely that these virtual currencies could recover anytime soon. Due to ApeCoin and the BAYC being based on the Ether network, they are inevitably going to be affected by the movement of the popular cryptocurrency. Ethereum has also taken a massive tumble in recent times.
There are a variety of factors that are currently proving detrimental to the price of crypto tokens in general, and this is evident in the massive landslide in value that has been observed over the last eight months or so. In order for NFTs based on the Ether network to recover, they need to strongly rely on the value of Ether itself.
Crypto, in general, is on the ropes at the moment and needs a “miracle” to once again reach its former heights. This adversely affects the value of NFTs as well. It is possible that once inflation and energy prices are reduced that cryptocurrencies may be able to recover; however, for now, a resurgence in price seems unlikely.
The Bottom Line
NFTs and cryptocurrency are both currently in a very tough spot. Many major investors and players are advising against them at the moment. However, only time can truly tell if these virtual assets can recover.
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