The arrival of ApeCoin was a pioneer for the NFT community as it was the first native token for the NFT collection. But what it brought was somewhat unexpected.
ApeCoin = Dogecoin?
May 4th was a rather eventful day for APE holders as the coin surged 13% in the 24 hours after Elon Musk’s tweet traded at $16. APE’s reaction was in response to the Twitter owner changing their profile picture to a BAYC NFT set.
Now, Musk’s influence in the crypto space is well known. In fact, the announcement that he and his company Tesla would not accept Bitcoin for payments triggered the May 2021 clash.
Also, he alone brought Dogecoin to the mainstream and continues to put a lot of effort into promoting and developing it. He even made DOGE a valid payment method for Tesla.
Now, Dogecoin is famous for the power that ‘DOGEfather’ holds in altcoins.
However, due to growing interest in the NFT and Elon’s absolute control over Twitter, his secret move over a profile picture triggered the rally.
Nevertheless, as mentioned earlier, excessive volatility in APE is already a concern and is exacerbated by knowing that it is vulnerable to impact.
Being the native token of the BAYC collection, it is already vulnerable to price fluctuations due to any developments occurring on the NFT.
Currently, the Bored Ape Yacht Club collection has traded close to $2 billion with an all-time volume of approximately $1.6 billion, making it the second collection after cryptopunk has traded over $2 billion.
Aside from that, the APE whales have been very active over the past few days. On May 5, there were close to 100 transactions worth over $1 million.
Random spikes in their activity and popularity can lead investors to act without thinking, which may not be in their favor. It is important to note that APE holders are currently not very satisfied.
Therefore, it is important to find stability before ApeCoin becomes the next Dogecoin.