ApeCoin (APE) will undergo a token unlock valued at $16.69 million. This development comes amid bearish price action for the token, which has seen it lose half of its market value in the third quarter of 2023.
15.60 million ApeCoin (APE) will flood the market next week
According TokenUnlocks dataThe next ApeCoin token unlock will occur on October 17, during which ApeCoin DAO will put 15.60 million new APE tokens into circulation.
This will mark the tenth unlocking of the APE token in 2023, as this event occurs on the seventeenth day of every month. According to more information from TokenUnlocks, the newly launched APE coins will be allocated to five main parties.
These include Yuga Labs and its founder, the ApeCoin DAO Treasury, the charity organization, and the project’s launch contributors, i.e. the first investors in the token before its official launch. Upon launch, the tokens are expected to represent 4.23% of the circulating supply of APE.
ApeCoin launched in March 2022, with a maximum supply of 1 billion tokens, of which 54.25% are currently unlocked. However, only 367.59 million APE are part of the circulating supply of the token.
Will APE’s bearish form continue?
Generally, token unlocks are often accompanied by concerns about an incoming bearish trend. This is because the sudden availability of large quantities of tokens may prompt some investors to sell and take profits, putting downward pressure on the price of said tokens.
As noted above, APE is already stuck in a prolonged bear market. Although the token is only down 2.79% in the last month, its overall performance in 2023 has been largely negative.
According CoinMarketCap dataAPE has lost 70% of its value in 2023 compared to its market price on January 1.
APE could soon record further losses with the token unlock scheduled for next week. However, that may not be the case. Based on historical data, token unlocks do not always result in a price loss, as notably seen with Aptos in January, which saw APT gain 50% following its monthly token release.
Additionally, there have been some interesting developments surrounding ApeCoin in the last week. On October 11, Polygon co-founder Sandeep Narwal proposed in ApeCoin DAO the development of a unique layer 2 solution for ApeCoin, known as “ApeChain”.
Currently, APE is based on the ethereum network and serves as the governance asset of the APE ecosystem, which consists of nft projects launched by Yuga Labs, such as the Bored Ape Yacht Club (BAYC).
However, the creation of ApeChain could allow Apecoin to achieve a higher level of scalability, which, in turn, could positively affect its adoption and market price.
APE is trading at $1.06 at the time of writing, with a gain of 1.47% in the last day. Meanwhile, the token’s daily volume is down 16.96%, valued at $19.32 million.
APE trading at $1.060 on the hourly chart | Source: APEUSDT chart on Tradingview.com
Featured Image by Digicentralized, Chart by Tradingview
