There is always an interest in new NFT collections although the Otherside collection was met with tremendous anticipation. Likewise, the new metaverse project by Yuga Labs is of keen interest to ApeCoin holders. After a successful public sale, it will be interesting to see what the future holds. Rumors have been swelling for days regarding Otherside and Yuga Labs. Ever since Yuga Labs released ApeCoin there had been a utility demand.
Why Did ApeCoin Crash?
Rather than focusing on payments like so many other projects, the APE currency would provide exclusive access to NFT collections, events, etc. One such exclusive collection is Otherdeed for Otherside the metaverse project built by Yuga Labs. The project has gone live in the past 48 hours with its land NFT sale. Users could acquire 55,000 land plots for this virtual world and pay for their purchase with $APE, a welcome development and one that helped contribute to the accumulation of APECoin these past few days.
The Otherdeed for Otherside land NFT sale raised 16.7 million APE or roughly $317 million, which means roughly 7.85% of the circulating $APE was used during this event. Unfortunately, the overall demand for $APE has now seemingly vanished as the sale has concluded. All 55,000 plots were minted and sold pretty quickly the collection trades on OpenSea yet it seems most traders will pay with Ether as the NFTs reside on the Ethereum blockchain, as such there is no need for anyone to own $APE right now at least for buying land NFTs which explains why the price is crashing.
The dwindling demand for $APE would ruin the price momentum. People massively acquired tokens to partake in the land NFT sale and now have no immediate purpose for the asset. The result is somewhat expected, a near 40% price drop, bringing the ApeCoin value back down to just over 14$, that doesn’t mean the asset won’t return to over 25$ in the coming weeks or months but there is no pressing reason to pay top dollar for this coin right now.
$APE still has nearly 5 billion dollars in trading volume while there is substantial bearish pressure on the market it is not impossible to overcome. some people speculate Yuga Labs has already begun dumping the $APE they gathered although official sources have not confirmed that. Even so, there will be some unrest for a coin over the next few days.
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author: Rene Remsik
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.