Will ApeCoin’s ‘influential NFTs’ halt APE’s price plummet?

Post­ed: Sep­tem­ber 19, 2023

• With a recent pro­pos­al, ApeCoin DAO is seek­ing the estab­lish­ment of a sis­ter DAO to acquire “influ­en­tial NFTs.”
• APE’s price has dropped by almost 30% in the last month as demand craters.

A pro­pos­al to estab­lish a “sis­ter DAO” and allo­cate 750,000 APE tokens to it, in a bid to acquire influ­en­tial non-fun­gi­ble tokens (NFTs), was being vot­ed on by the ApeCoin DAO com­mu­ni­ty. It had an approval rate of 65% at press time, snap­shot data revealed. 

How much are 1,10,100 APEs worth today?

The pro­pos­al, first pub­lished in July, sought an ini­tial allo­ca­tion of 750,000 APE tokens from the protocol’s trea­sury to acquire “cul­tur­al­ly sig­nif­i­cant” NFTs.  These dig­i­tal col­lectibles would be held in a com­mu­ni­ty-run vault, with deci­sion-mak­ing pow­er rest­ing in the hands of APE holders. 

As con­tained in the proposal:

“The objec­tive of this pro­pos­al is to posi­tion ApeCoin as the web3 cul­ture token to pow­er the broad­er web3 ecosystem”

The pro­posed list includes eight Bored Ape Yacht Club [BAYC], 12 Mutant Ape Yacht Club [MAYC], 15 Bored Ape Ken­nel Club, 15 Moca­verse, 15 World of Women, 15 Cool Cats, 15 Oth­erdeed, 12 Pudgy Pen­guins, and 20 Sand­box [SAND] NFTs. 

As of this writ­ing, 4.4 mil­lion APE tokens have been deployed toward vot­ing in favor of the proposal. 

APEs have little demand for the metaverse-based token

Exchang­ing hands at a one-month low of $1.13, APE’s val­ue has plum­met­ed by 27% in the past thir­ty days due to a short­fall in dai­ly active address count and new demand for the token. After attain­ing their respec­tive peaks on 17 August, these have dwin­dled significantly.

As of 18 Sep­tem­ber, only 1452 address­es com­plet­ed trans­ac­tions that involved APE. This rep­re­sent­ed a 94% decline from the 17,000 address­es that trad­ed the alt on 17 August.

The count of new address­es cre­at­ed to trade the alt was less than 250 address­es on 18 Sep­tem­ber, data from San­ti­ment showed. Since 17 August, new demand for APE has dropped by 98%. 

Source: San­ti­ment

Amongst the token’s spot traders, dai­ly accu­mu­la­tion has slowed. Key momen­tum indi­ca­tors observed on a 24-hour chart were spot­ted at regions that sug­gest­ed that the alt­coin would soon become “over­sold.” 

For exam­ple, APE’s Chaikin Mon­ey Flow (CMF) trend­ed down­ward and was posi­tioned below its cen­ter line at ‑0.17. It is trite to note that a neg­a­tive CMF val­ue sig­nals sig­nif­i­cant mar­ket bear­ish­ness, with the con­sis­tent removal of liq­uid­i­ty need­ed to induce a price rally.

Real­is­tic or not, here’s APE’s mar­ket cap in BTC’s terms

Like­wise, the K line (blue) of the altcoin’s Sto­chas­tic RSI indi­ca­tor inched close to the 20% lev­el. The Sto­chas­tic RSI indi­ca­tor mea­sures momen­tum and iden­ti­fies over­bought and over­sold con­di­tions in the market. 

A Sto­chas­tic RSI val­ue below 20 typ­i­cal­ly sug­gests increased dis­tri­b­u­tion. It shows that an asset has been over­sold, and until sen­ti­ment improves, the price will con­tin­ue to plummet. 

Source: APE/USDT on TradingView