Apecoin (APE) is a digital currency that was named after the popular digital collectibles Bored Ape Yacht Club (BAYC).
The cryptocurrency was launched on March 17, 2022, and has so far garnered the interest of millions of traders and investors across the globe.
It is the first digital asset created purposely for an NFT and contributed to the sales volume of BAYC in the month of March.
The developers took inspiration from the novel tokens of Decentraland (MANA), the Sandbox (SAND), and Axie Infinity (AXS). These are decentralized applications (DAPPs) that run on the Ethereum Network as well.
The logo of the coin looks extremely similar to some of the 10,000 unique digital collectibles featured in the BAYC.
If you are a novice/beginner trader or an experienced trader looking for the next cryptocurrency about to explode, you should consider investing in ApeCoin. This is because there are so many potential price drivers that could be triggered in the future to make investing in ApeCoin worth time and money.
In less than one month, the coin has brought more than 1,200% gains to early investors. Going with the impacts non-fungible tokens (NFTs) continue to make in the crypto finance space, ApeCoin will continue to benefit investors.
So, should you invest in ApeCoin? If you are unsure whether or not you should invest in ApeCoin, here are some reasons to consider that can guide you through investing in APE.
Top Reasons Why You Should Invest In ApeCoin
There are many reasons why you might want to invest in ApeCoin (APE) ― probably, some that have never crossed your mind.
After doing a thorough analysis of the ApeCoin ecosystem, we settled on 14 reasons why you should invest in APE.
1. Support from a Non-Fungible Token (NFT) Powerhouse
ApeCoin, on the other hand, relies on the impact of the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) by Yuga Labs.
As of writing, ApeCoin is an ERC20 token running on Ethereum’s Network. This means that the protocol does not bring any unique innovation to the crypto finance space since blockchain enthusiasts have gotten accustomed to the possibilities of Ethereum.
The token would have otherwise relied on mere speculation (demand and supply) if it was not modelled after Apes.
ApeCoin and the Bored Ape Yacht Club have a mutually beneficial relationship.
As of the token’s launch on March 17, the NFT dropped by 64% in sales volume from January 2022’s $311 million. The total sales volume of BAYC for February was around $110 million.
After struggling to find unique buyers within the first two weeks of March, the launch of ApeCoin (APE) transformed the fortunes of BAYC.
After seeing a decline in unique buyers from 815 in January to 310 in February, there was an 82% spike that brought the total unique buyers for March to 565.
The demand for APE in the last two weeks of March helped BAYC close the month with total sales of approximately $277 million. The ascension of BAYC also resulted positively in ApeCoin.
2. ApeCoin Has an Impressive Capitalization
Market capitalization helps give investors an indication of the size of a crypto project.
It helps investors predict the future performance of an asset since it reflects what the market is willing to pay for a particular coin.
Such a valuation in less than one month of being considered a crypto trading asset has made APE more valuable than some mainstream crypto projects.
Some of these crypto tokens include decentralized applications (Aave and PancakeSwap), Eos (EOS), Flow (FLOW), Maker (MKR), The Graph (GRT), Convex Finance (CVX), Iota (MIOTA), Zcash (ZEC), Gala (GALA), Chiliz (CHZ), Kusama (KSM), Enjin Coin (ENJ), IoTeX (IOTX), and Yearn Finance (YFI).
In addition to decentralized finance projects, APE’s market capitalization makes the project more valuable than several centralized finance companies.
Some of these companies include Hyundai Group, Swisscom, Philips, Delta Air Lines, VeriSign, Kia, H&M, and BT Group among others.
With more than 700 million coins still up for grabs, there is a huge chance that APE could increase substantially in price going forward. Having recorded at least $400 million as daily volume, positive crypto market sentiment could drive its market value to $10 billion which will categorize APE as a large-cap digital asset.
3. ApeCoin Is Listed by Major Crypto Exchanges
One of the worst things that can happen to you as a trader or investor is to buy a token that cannot be easily accessed by millions of people.
Luckily, it is extremely easy to find ApeCoin on popular exchanges.
It is extremely rare to see a digital asset gain such mileage within a short period.
APE was added by eToro to its growing list of cryptocurrencies supported on its launch date.
Aside from that, the largest cryptocurrency exchange by volume, Binance announced support for APE a few hours before its launch. Other centralized exchanges such as Coinbase, OKX, Crypto.com, BitMart, Kraken, BitGlobal, Bybit, Gemini, FTX, KuCoin, Gate.io, Huobi Global, OKCoin, Poloniex, AAX, and BitPanda support the trading of APE on their respective platforms.
Aside from centralized exchanges (CEXs), decentralized exchanges such as Uniswap (UNI) and SushiSwap (SUSHI) support the trading of APE via crypto wallets.
Don't Miss: The Best Places to Buy ApeCoin (APE)
4. ApeCoin is housed in the Ethereum Ecosystem
Despite the achievements of Algorand, Avalanche, Binance Smart Chain, and the TRON network in the last two years, Ethereum is still the go-to blockchain for the creation of smart contracts.
As of April 2022, Ethereum has an impressive development activity. The chain falls within the top ten technologies with the most developers working on new applications.
This is the primary reason why Ethereum has around $126 billion in total value locked (TVL) which is represented by more than 50% of the total value locked.
Being a part of the Ethereum Network means APE comes into contact with several areas of the crypto finance space.
On Ethereum, there are decentralized exchanges such as Uniswap and SushiSwap which list the token for trading.
Aside from that, several stablecoins run on the Ethereum Network and can be paired with APE during bearish seasons.
What’s more, the Bored Ape Yacht Club (BAYC) digital collectibles live on the Ethereum blockchain.
In the not-too-distant future, aside from using Ether (ETH) to make purchases of some of the 10,000 unique Bored Ape NFTs, there is a huge chance APE could be listed as a payment method.
In addition to these, decentralized applications such as Compound (COMP), Aave, Maker, Curve (CRV), and Yearn Finance are always on the lookout for liquidity providers (LPs).
You can swap your APE tokens for the novel tokens of these protocols and earn annual decent percentage returns.
Therefore, investing in APE should not give you nightmares because there are several possibilities on the Ethereum Network that can impact ApeCoin positively.
5. ApeCoin Continues to See Huge Investor Demand
Investor demand is always reflected in trading volume.
As a trader, one of the areas of trading and investing you cannot do away with is volume.
Luckily, cryptocurrencies are being tracked by several channels such as CoinGecko, Coindesk, and CoinMarketCap among others. Do a thorough study of the amount of money that a particular coin sees daily.
This will embolden you to make a great decision on your token of interest.
The trading volume of APE on its opening day was around $2.3 billion. There was a 277% increase to approximately $8.9 billion on March 18, 2022.
The lowest trading volume APE recorded was on March 31, when investors poured more than $766 million into the cryptocurrency.
Due to bears being a strong fixture in the trading patterns of cryptocurrencies, trading volume has decreased across the board in April.
Even with that, APE recorded more than $650 million on the 1st day of the first month of the second quarter of 2022.
The lowest trading volume APE has recorded in April was more than $470 million.
This should tell you that investors have not forsaken the token.
In a market of more than 18,500 tokens, it is extremely impressive to see ApeCoin maintain its trading volume range.
With this, you can invest in APE knowing that there is always another trader at the other end of your order who is ready to meet your request.
As a trader, we would like you to know prices of currencies go up when trading volume increases and go down when trading volume decreases.
6. ApeCoin Has Positive Reserve Risk
Reserve risk analysis arrives at two things and they are an attractive investment and an unattractive investment.
An investment can be considered attractive if investor confidence is higher than the price of the asset.
An investment can be considered unattractive if investor confidence is lower than the price of the asset.
Therefore, if a cryptocurrency trades for $10,000 but investor confidence in the token is low, it cannot be considered an attractive investment.
The largest markets for APE are Binance which sees more than $150 million recorded in daily volume for the token.
This is followed by Huobi Global where APE sees more than $120 million in daily volume. Others such as Coinbase PRO record more than $50 million for APE, Gate.io records at least $45 million for ApeCoin, Kucoin records a minimum of $25 million in volume for the novel token behind the ApeCoin ecosystem, and OKX records at least $10 million in volume for BAYCs native asset.
Although APE trades for a fraction of Ethereum (ETH), Binance Coin (BNB), and Bitcoin (BTC), the cryptocurrency has the confidence of investors.
With the statistics provided, you know that investing in APE with an amount of money that meets your goal can be considered an attractive investment.
Check Out: ApeCoin (APE) Price Prediction
7. APE Has a Massive Community behind It
No cryptocurrency or project can survive without a great community.
Bitcoin and Ethereum could not command such massive market capitalizations without the efforts of their fans.
ApeCoin, like most coins on the Ethereum network, serves as governance tokens.
This means that several people from the ApeCoin community can contribute to vital decisions concerning the future of the project.
They continue to promote the token to newbies through social media platforms such as Reddit, Twitter, Discord, Telegram, Instagram, and Facebook.
With billions of people active on these channels, it has become easy for skeptics of the ApeCoin project to find meaning.
This is the primary reason why there is positive reserve risk and APE continues to see millions thrown at it daily across the 40 exchanges that support it for trading.
Hype has become an essential part of trading crypto.
That does not mean you should rely on mere speculation to invest in a cryptocurrency.
Take it upon yourself to go through this article countless times and invest in ApeCoin knowing you understand the metrics of the crypto project.
8. Apecoin Ecosystem Has Room for Growth
In 2016, if someone told you Vitalik Buterin’s innovation would become this big, you would not have believed the person.
After modeling Ethereum after Satoshi Nakamoto’s blockchain technology, Ethereum decided to go beyond just being a chain that settles petty financial transactions.
As a result, the team behind the project built an ecosystem that has allowed the unbanked and the underbanked to become a part of the financial world through decentralized finance.
In the same way, ApeCoin has started small and could expand its ecosystem with exciting applications.
Who knows, maybe ApeCoin could become the next Binance or Tron. What did Binance and TRON do?
The two projects started on Ethereum as an ERC20 token and later moved onto their blockchains.
Today, the two chains compete with Ethereum in all areas of the crypto stratosphere.
In the future, investing in ApeCoin could see you become a part of decentralized lending, exchange, yield aggregation, insurance, cloud storage, and Oracle solutions.
9. Investing in ApeCoin is fast and easy
ApeCoin can be found on cryptocurrency exchanges with three-way accessibility.
Aside from accessing eToro, Binance, and OKX via the World Wide Web on your desktop, you can also find these platforms on app stores on iOS and android-powered smartphones.
This way, using several payment methods such as bank cards, bank transfers, and e-wallets such as PayPal, Skrill, and Neteller among others, you can buy any amount of APE.
Within seconds, your order will be processed and completed.
Aside from centralized exchanges, you can also buy ApeCoin fast on Uniswap and SushiSwap.
All you have to do is to find a crypto wallet that supports the storing and transferring of APE such as TrustWallet.
Once you have Ether (ETH), you can connect your wallet to either of the two decentralized exchanges.
You can order any amount of APE and they will be added to your crypto portfolio of investments.
10. ApeCoin (APE) Has the Unification of Spend
You may have come across several articles such as is ApeCoin a good investment, should you invest in ApeCoin, should you buy ApeCoin, and what are the pros and cons of investing in ApeCoin. One thing millions of people fail to ask is, what gives cryptocurrencies value?
You should know that currencies of the 21st century are known as representative money.
Therefore their value comes from the faith residents of a specific geographical location have in them since they do not hold any value of their own.
Now that we are on the same page, you should know that six attributes confer value on a currency.
They are scarcity, transferability, divisibility, non-counterfeitability, durability, and utility.
ApeCoin can be sent from one crypto wallet to the other (transferability).
APE can be divided into 8 decimal points. In the case you are unable to buy a whole APE, you can buy fractions of the token (divisibility).
ApeCoin cannot be duplicated or double-spent (non-counterfeitability).
Ape coin is durable as it exists on a blockchain that has not been breached in its more than ten years of existence (durability).
APE has a fixed total and maximum supply of 1 billion tokens.
Once all tokens have been purchased, scarcity will set in, and drive the price to new milestones.
The most important of all is utility.
If a currency cannot be used to purchase goods and services, it cannot be categorized as valuable.
APE has had its first taste of utility in the Benji Banana game where it can be used for in-game purchases.
Aside from this, the team behind the coin looks forward to integrating the cryptocurrency with several games and marketplaces that would be added to their ecosystem in the future.
Once this happens, the daily number of transactions of APE could be rivaling that of mainstream cryptocurrencies Litecoin, Dogecoin, Bitcoin, Tron, and Ether.
The resultant effect will be reflected positively in the valuation of APE.
11. APE is being marketed through Promotions
One of the best ways to stay in touch with a project and receive free tokens is through airdrops.
Airdrops are a strategic way of introducing new tokens to a group of people, primarily loyal customers of an exchange, users of a particular crypto wallet, or holders of non-fungible tokens (NFTs).
The ApeCoin airdrop promotion began in March and will end in the middle of June 2022.
The team behind the coin is airdropping 150 million APE tokens to holders of the Mutant Ape Yacht Club (MAYC) and the Bored Ape Yacht Club (BAYC).
Those who own BAYC and MAYC stand a chance of claiming up to 10,094 APE tokens.
As a result, many NFT lovers stand a chance of seeing approximately $121,000 worth of free tokens.
This has contributed to a spike in the number of unique buyers of Bored Ape Yacht Club and Mutant Ape Yacht Club.
Since ApeCoin is linked to these NFT projects, the increased transaction counts, which have led to soaring sales volumes will only impact the novel token behind the ecosystem positively.
Since the airdrop ends in June, it would not be surprising to see a huge influx of unique buyers storm BAYC and MAYC, and lead ApeCoin to new all-time highs.
Investing in ApeCoin could see you get multiple percentage gains on your capital by the end of 2022.
12. ApeCoin Has the Backing of Influential Figures
The association of Vitalik Buterin with Shiba Inu (SHIB) through the Shiba Foundation helped the token reach new heights in 2021. ApeCoin has the backing of Alexis Ohanian who is the co-founder of Reddit and General Partner & founder of Seven Seven Six. He is part of the ApeCoin Foundation.
Other well-known figures who are part of the Ape Foundation include Dean Steinbeck (President and General Counsel at Horizen Labs); Head of Ventures & Gaming at FTX, Amy Wu, and Principal at Sound Ventures, Maaria Bajwa.
These individuals’ job description cuts across all facets of the crypto finance space.
What’s more, they have huge followership across the social media space and are the go-to persons for updates on where the financial world is heading.
As a result, you can invest in ApeCoin (APE) knowing that the project has little to zero chance of collapsing.
These are individuals that have contributed to the building of cryptocurrency exchanges, financial technology products, and social media companies that continue to create vibrant crypto communities.
These influential figures are one of the reasons why you should consider investing in ApeCoin.
13. ApeCoin Introduces You to the Metaverse
Metaverse is a virtual reality space where users interconnect with computer-generated environments and other users.
The metaverse is an $8 trillion industry, according to Joe Swartz at MarketWatch.
Grayscale, which has several Trusts set up for cryptocurrencies believes the Metaverse is a trillion-dollar market economy.
Video games play an integral role in the meta-verse and this is what contributed to the spike in the sales volume of Axie Infinity in 2021.
In-app purchases in Axie Infinity, as well as the Sandbox, led to a spike in their novel tokens, AXS, and SAND towards the end of 2021.
ApeCoin intends to expand into a range of entertainment and video game products.
The popularity of blockchain-based video games continues to soar. Although Decentraland, Axie Infinity, and the Sandbox have the first-mover advantage, ApeCoin could benefit massively from the metaverse development.
In the end, if more people use APE in their in-game purchases, the price of the token will be reminiscent of AXS and SAND which reached new all-time highs of $165.37 and $8.44 respectively in November 2021.
14. ApeCoin is Highly Undervalued
As of writing, APE is trading below $20.
For an extremely popular cryptocurrency, that has the major backing of influential figures, and has the support of all the major cryptocurrency exchanges (centralized and decentralized), APE should be commanding a minimum price of $50.
As we head into the second, third, and fourth quarters, several partnerships would be formed by ApeCoin.
Do not be surprised if Grayscale takes a chance on APE as it has for several cryptocurrencies by creating a special Trust for it.
As whispers of several integrations of the token by several publishers of video games and mainstream companies continue to trend online, APE can only look forward to a bright future.
Another area of interest is crypto casinos which are linked to the online gaming industry.
Thanks to crypto, you do not have to face limitations by your central bank which bans you from using your bank card on gambling websites.
You can use your crypto wallet as a payment method.
Many crypto casinos such as BC.GAMEs support APE as a token for depositing and withdrawing funds.
Once the possibilities of crypto casinos come to the mainstream in addition to the integration of APE by millions of merchants, APE could head to the level of predictions being made by analysts and gurus.
Investing in undervalued tokens has brought huge gains to many traders. Investing in ApeCoin as an undervalued cryptocurrency could help you too.
The popularity of ApeCoin and the BAYC and MAYC does not automatically confer success on the cryptocurrency.
Always remember that cryptocurrencies come with huge risks. There is a chance that you could lose your entire investment within a short period.
You should know that investing in ApeCoin comes with two factors and they are risk and reward.
Always remember to ask the question, do the potential rewards of investing in ApeCoin outweigh the possible consequences of the risks?
If rewards exceed risks, you can go ahead and invest in APE with the amount of money you can afford to lose.
So, should you invest in ApeCoin today?
Based on the reasons outlined above, you may consider investing in ApeCoin today. However, the onus falls on you to conduct independent research that will embolden you to know if investing in APE is a good investment.
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