- ApeCoin has been one of the worst-performing cryptocurrencies this year.
- The floor price of Bored Ape Yacht Club has been in a downward trend.
- ApeCoin will have a major token unlock event later this month.
ApeCoin price has been in freefall in 2023 as concerns about the NFT ecosystem and its tokenomics rose. APE was trading at $1.352 on Monday, down from the year-to-date high of $6.41. It has been one of the worst-performing cryptocurrencies this year.
BAYC and token unlocks
There are two main reasons why the ApeCoin price has collapsed in the past few months. First, demand for Bored Ape Yacht Club (BAYC) non-fungible tokens (NFT) has been in a freefall. Most of its NFTs have seen its price plunge this year.
The best way to look at this is through the floor price. Data compiled by CoinGecko shows that the floor price plunged by 1% in the past 24 hours to 26.84 ETH. At its peak in May last year, the floor price was 153,700 ETH, signaling that demand has dried up.
Second, ApeCoin’s tokenomics and vesting schedule has diluted most holders over time and the trend will continue. Data shows that the developers have unlocked over 212 million tokens in the past 12 months. These tokens, which are worth over $290 million, represent over 57% of the total coins in circulation.
ApeCoin is set to unlock an additional 40.6 million tokens worth over $55.62 million. These tokens represent about 11% tokens in the market. And this trend will continue until June 2026.
Most of these tokens will go towards ApeCoin’s insiders. For example, tokens worth over $3 million to be unlocked this month will go to Yuga Labs founder. $10.6 million worth of tokens will go to Treasury an $5.71 million will be allocated to Yuga Labs.
Token unlocks are extremely dilutive, meaning that one token today will be worth less when more tokens are added into circulation. Therefore, these two reasons make it difficult to recommend investing in ApeCoin.
ApeCoin price forecast
APE price has been in a strong bearish trend in the past few months. This decline has seen the token drop from the year-to-date high of $6.40 to below $2. The token has also dropped below the key support at $2.6, the lowest swing in November last year.
ApeCoin has also moved below the 50-day and 100-day moving averages. The Relative Strength Index (RSI) and Stochastic Oscillator have moved to the oversold. Therefore, the token will likely continue falling as sellers target moving below $1.
