- After two years of waiting, ApeCoin (APE) gets its own Layer-2 chain.
- The community’s vote on the AIP-378 proposal favored Arbitrum (ARB).
- ApeCoin grows 22% monthly, and tackles the weekly high of $1.76.
Last week, Arbitrum clinched a win over Polygon (MATIC) to build the highly-anticipated L2 ApeChain. ApeCoin DAO’s move to detach from Ethereum (ETH) comes two years after the Web3 behemoth Yuga Labs parted ways with the memecoin, passing the reins to the Bored Ape Yacht Club (BAYC) community.
Being built on the popular Layer-2 blockchain Arbitrum (ARB), ApeChain is meant to be the new home of the vibrant BAYC community, focusing on giving a second life to blockchain gaming. The decision to use Arbitrum for the deed is posed to dramatically reduce transaction costs with new scalability opportunities and solve the frequent issue of high demand clogging the airdrops and mints.
To illustrate, last week’s Legends of The Mara NFT mint has mildly infuriated BAYC members due to high mint costs on Ethereum and constant hiccups, known to be a notorious topic among BAYC community members since the 2022 Otherside metaverse land sale by Yuga.
Did APE Break Free from the Bears?
Yuga Labs, the parent company of multiple blue-chip NFT collections like the Bored Ape Yacht Club, Meebits, and the Mutant Ape Yacht Club (MAYC), congratulated Arbitrum’s creators Offchain Labs and Horizen Labs.
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ApeCoin broke out of bearish restraints in monthly terms, soaring from $1.39 on January 20, 2024, to $1.72 today. However, the primate-themed memecoin is still 93.6% from its all-time high of $26.7, set on April 28, 2022.
Since then, the plunging public interest in non-fungible tokens (NFTs) and blockchain gaming have severely contributed to maintaining ApeCoin’s downward trend to $1.01. This all-time low served a wake up call to prominent ApeCoin whales, resulting in a few quick pumps for APE, but the memecoin is still down 70% yearly.
On the Flipside
- The new Layer-2 blockchain powered by ApeCoin (APE) will launch in Q4 of 2024.
- ApeCoin’s upward trajectory is constantly challenged by pre-scheduled APE unlocks.
- The looming APE unlock on March 17, 2024, will offload 15.6M APE into circulation.
Why This Matters
ApeCoin’s rebound rally comes amid a long-term mutual community effort to build a self-sufficient blockchain independent of Ethereum PoS.
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