ApeCoin (APE) will undergo a token unlock worth $16.69 million. This development comes amid the token’s bearish price action, which has resulted in it losing half of its market value in the third quarter of 2023.
15.60 million ApeCoin (APE) will flood the market next week
According to data from TokenUnlocksApeCoin’s next token unlock will take place on October 17, during which the ApeCoin DAO will release 15.60 million new APE tokens into circulation.
This will mark the tenth unlock of APE tokens in 2023, as this event takes place on the seventeenth day of every month. Based on more information from TokenUnlocks, the newly released APE coins will be allocated to five major parties.
These include Yuga Labs and its founder, the ApeCoin DAO Treasury, a charity and the contributors to the launch of the project, i.e. early investors in the token before its official launch. Upon release, tokens are expected to make up 4.23% of APE’s circulating supply.
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 token’s circulating supply.
Will APE’s Bearish Shape Continue?
In general, token unlocks come with concerns about an emerging downtrend. This is because the sudden availability of large amounts of tokens may prompt some investors to sell and take profits, which puts downward pressure on the price of the said token.
As mentioned earlier, APE has been stuck in a bearish market for a long time. Although the token is only down 2.79% over the past month, its overall performance in 2023 has been largely negative.
According to data from CoinMarketCapAPE has lost 70% of its value in 2023 compared to the market price on January 1.
APE could post more losses soon with the token unlock set for next week. However, this may not be the case. Based on historical data, token unlocks do not always result in a price loss, as seen most notably with Aptos in January, where APT gained 50% following the monthly token release.
Moreover, there have been some interesting developments surrounding ApeCoin in the past week. On October 11, Polygon co-founder Sandeep Narwal said suggested at the ApeCoin DAO the development of an exclusive layer 2 solution for ApeCoin, known as “ApeChain.”
Currently, APE is based on the Ethereum Network and functions as the governance tool of the APE ecosystem, which consists of NFT projects launched by Yuga Labs, such as the Bored Ape Yacht Club (BAYC).
However, creating ApeChain could allow Apecoin to reach a higher level of scalability, which could in turn positively impact its adoption and market price.
APE is currently trading at $1.06, with a gain of 1.47% on 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 from Digicentralized, chart from Tradingview
