ApeCoin (APE) Token Unlock Scheduled for Next Week
ApeCoin (APE) is preparing for its next token unlock, which is expected to release 15.60 million new APE tokens into circulation. This event, set to occur on October 17, marks the tenth token unlock of the year. The newly released tokens will be allocated to Yuga Labs and its founder, the ApeCoin DAO Treasury, charity, and early investors in the project.
Currently, ApeCoin has a maximum supply of 1 billion tokens, with 54.25% already unlocked. However, only 367.59 million APE tokens are part of the circulating supply.
Possible Bearish Impact on APE Price
Token unlocks often raise concerns about a potential downward trend in price. The sudden availability of a large number of tokens can lead some investors to sell and take profits, putting pressure on the token’s price.
APE has already experienced a bearish market, with a 70% loss in value compared to its January 1 price. The upcoming token unlock may further contribute to potential losses. However, historical data shows that not all token unlocks result in price declines.
Positive Developments for ApeCoin
In recent news, Sandeep Narwal, co-founder of Polygon, proposed the development of an exclusive layer 2 solution called “ApeChain” for ApeCoin. This new solution could enhance scalability and potentially boost adoption and market price.
Currently based on the Ethereum Network, APE functions as the governance asset for various NFT projects launched by Yuga Labs. The introduction of ApeChain could bring significant improvements to the APE ecosystem.
As of now, APE is trading at $1.06 with a 1.47% gain in the last day. Its daily volume is valued at $19.32 million, experiencing a 16.96% decrease.
Hot Take: APE Token Unlock and Future Prospects
The upcoming APE token unlock presents both risks and opportunities for investors. While token unlocks can lead to price declines, historical examples show that positive outcomes are also possible. The proposed development of ApeChain by Polygon co-founder Sandeep Narwal introduces exciting possibilities for scalability and market growth. As ApeCoin continues to navigate its bearish market, the effects of the token unlock remain uncertain. However, keeping an eye on key developments and market trends could provide insights into potential future prospects for APE.
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