Why ApeCoin (APE) Is Going To Explode In 2023

Last Updated December 29th 2022

5 Min Read

Wondering if ApeCoin is ready to explode? Here’s everything you need to know before investing in APE.

The crypto market has recently become a primary investment avenue for finance enthusiasts. The domain comprises several exciting crypto tokens representing distinct projects. Currently, investors are especially attracted to NFTs, and out of all the limelight catching NFTs, the Bored Ape Yacht Club and its related collections are probably the most prominent.

The creators feature bored-looking apes that could be customized down to the tiniest details based on the buyer’s choices. These ordinary-looking artworks attracted the attention of several investors. Some of them even sold for hundreds of thousands of dollars, with the customer list ranging from Justin Bieber, Eminem, and so on. The ApeCoin (APE) is the Bored Ape Yacht Club’s very own cryptocurrency that gained striking popularity in recent months.

ApeCoin aims to be a sustainable and scalable cryptocurrency. Go on and read about why enthusiasts predict that ApeCoin is going to explode in 2023.

Is ApeCoin All Set To Explode In 2023?

ApeCoin has been on a continuous rally since March 2022. The Bored Ape Yacht Club (BAYC) proved to be one of the hottest non-fungible token (NFT) collections last year, solidifying itself as a leader by market capitalization within the NFT space. However, despite the collection’s massive growth, the hype has not faded. In 2022, the BAYC ecosystem continues to grow, because of increased adoption by celebrities such as Post Malone and the ecosystem’s purchase of the popular CryptoPunks collection. This would eventually drive the adoption rate of the APE token, taking its value to colossal highs.

Even though ApeCoin is associated with Yuga Labs –– the company behind the intellectual property of the famous Bored Apes –– ApeCoin is a product of the ApeCoin decentralized autonomous organization (DAO). A DAO is a system that organizes people and their interests using the blockchain, which means that each token holder in the ApeCoin DAO has a say in the organization’s development.

With a bright future ahead for the Bored Apes and BAYC associated projects, ApeCoin seems like a promising utility token for the trending ecosystem.

Read Also: ApeCoin (APE) Price Prediction

APE Tokenomics

ApeCoin’s official token (APE) will act as the utility token for the APE ecosystem, focusing on strengthening the BAYC community. A utility token enables users to perform actions or initiatives on a certain network. Effectively, APE gives its participants a currency that can be used without any centralized intermediaries.

APE is an ERC-20 token, a particular type of custom-made cryptocurrency on the Ethereum blockchain. It has also been listed on global exchanges, namely Binance and OKX. The total supply of APE is locked at 1 billion tokens, so it is not possible to mint further tokens. However, the developers created no ability to burn APE, meaning supply will not decrease either. According to ApeCoin’s official website, Ape Token distribution is as follows: of the total supply, 62% belongs to the ecosystem fund, 16% is allocated to Yuga Labs and different charities, 14% goes to launch contributors, and 8% is for BAYC founders.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Factors That Drive ApeCoin To Explode This Year

Several factors drive the price of ApeCoin (APE) to skyrocket in 2022 and beyond.

1. The Bored Ape Yacht Club (BAYC)

To understand ApeCoin, you first need to look at its underlying protocol, the top-selling series of NFTs, the Bored Ape Yacht Club. This NFT sensation launched as a 10,000 strong series. Like most NFT collectibles, each token features various features that add to its scarcity. Specifically, you can find categories such as fur color, background color, outfits, and accessories.

Notably, the Bored Ape Yacht Club has a market cap of around +$3.7 billion. The lowest price for a Bored Ape is around $262,630, making it the top NFT collection in terms of popularity. The highest-priced token in the collection, Bored Ape #232, sold for $2.85 million. The firm behind the concept, Yuga Labs, managed to keep the creators’ identity secret for a while. However, it has been revealed that a team of designers led by the concept creators Greg Solano and Wylie Aronow designed it.

2. Unique Proposition and Offerings

One of the main issues that DAOs like ApeCoin seek to eliminate is centralization. Unlike stocks, where traders are left out of the decision-making process completely. DeFi (decentralized finance) protocols seek to bring all users into the fold. They improve community participation and enable large communities to avoid fractions.

It’s great to enable your users to participate in the direction of the platform, but these systems mean nothing if people are undedicated on how to accomplish this task. As such, ApeCoin provides valuable insight into the process. The goal is to educate DAO members on their new rights and how they can get their voices heard.

3. Low Fees and Transparency

One of the biggest problems facing DAOs currently is gas fees. It can hinder community participation when it costs users fees to perform voting transactions. ApeCoin provides a fee less structure that enables the community to conduct weekly votes versus monthly or bi-annually.

DAOs provide the community with far more transparency than centralized alternatives. All the processes and decisions are shared openly with the community. In the ApeCoin economy, one ApeCoin is equal to one vote. This arrangement makes it easy for voters to see how much weight their actions hold.

One of the quality control aspects of the ApeCoin DAO is that every AIP (Ape Improvement Proposal) must undergo review from moderators to ensure it meets the required criteria before it is made public. The community provides all users with access to the DAO guidelines as part of this approach. Only once an AIP receives an “in favor” vote will it move on to the implementation part of the process.

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ApeCoin Is Going To Explode: The Bottom-line

The ApeCoin project has shown how developers continue to move towards decentralization even after achieving initial success. Furthermore, given BAYC’s popularity and high demand from price-insensitive investors such as athletes and celebrities, it is reasonable to assume that demand for APE will grow among investors if the BAYC ecosystem continues to thrive.

If you believe that the BAYC ecosystem and Yuga Labs can thrive and outperform competitors in the future, ApeCoin could be a profitable way to capture the ecosystem’s increasing value.