How BAYC’s recent disappointment left ApeCoin [APE] in disarray

Bored Ape Yacht Club [BAYC] month-on-month (MoM) performance has been nothing to be thrilled about. Not only has the NFT collection declined in profitability, but buyers also seem to have lost interest in owning one of them.

For most, the global NFT market drop was a concrete reason. But how do you explain that one of the most respected collections had less than 300 buyers for the whole of August?

This was the case of BAYC as there were only 263 unique buyers for the whole month. This record was a 16-month low since its lowest in April 2021. It seems that the collection had taken an underperforming spirit into September.

According to NFTGo, only 24 unique buyers have been involved in trading BAYC since the start of September. This represented a 70% increase over the last seven days. This same underwhelming stance had affected its market cap which was down to $1.74 billion at press time.

Source: NFTGo

Tag along

BAYC was not the only one affected by this redundancy. Its governance token, ApeCoin [APE] had also suffered the same fate.

A look at APE’s thirty-day performance showed a largely unimpressive trend. After rising as high as $7.30 on 7 August, APE was trading at $4.25 at the time of writing. As per CoinMarketCap, the price had 11.10% decreased in the last 24 hours.

However, it seemed that the APEDAO was currently unconcerned about the price decline. Rather, its recent Twitter post showed that it was more committed to building its governance structure rather than the prices on the charts. Well, comments from a few traders on the Twitter update showed discontent with the APE’s current performance.

The DAO is here to fund your ambition & the sky’s the limit 🚀
Love the passion & brilliance being shared daily on Discourse – keep it up fam! If you have ideas to help our community or drive Web3 forwards, let's make it happen together 💪
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— ApeCoin (@apecoin) August 8, 2022

On-chain analysis

According to Santiment, APE’s on-chain activity has worsened since some excellent performance in May. The blockchain analytic platform reported that the seven-day APE circulation was 23.93 million.

The highest of the last month was 45.09 million on 12 August. As for the 24-hour active addresses, it was also in the drains. The metric which was 5523 on 7 August was down to 996 at press time.

Source: Santiment

Moving on to the four-hour chart, the outcome was nothing different. Indications from the Moving Average Convergence Divergence (MACD) showed that many investors were already selling their holdings.

Additionally, there was an obvious bearish momentum with both buyer (blue) and the seller (orange) all below the 12 to 26 Exponential Moving Average (EMA) close. Hence, hopes of a short-term recovery may be bleak for now.

Source: TradingView

https://ambcrypto.com/how-baycs-recent-disappointment-left-apecoin-ape-in-disarray/

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