A cryptocurrency called ApeCoin emerged from the Bored Ape Yacht Club’s non-fungible token (NFT) concept (BAYC). It is the first digital asset backed by NFT. An ERC20 coin called ApeCoin is stored on the Ethereum network. The ApeCoin community has emerged as one of the most active voices in the field, intending to use the token to educate millions of individuals about the potential of NFTs. By market value, it is in the top 50 cryptocurrencies. Its market valuation of more than $1.49 billion qualifies it as a medium-cap digital asset.
Advantages
The following are the advantages of Apecoin:
Certik has endorsed ApeCoin as secure
Decentralized finance (DeFi) initiatives and blockchain protocols are both monitored and analyzed by Certik, the top security-focused rating platform. CERTIK’s endorsement of a crypto project says a lot about its reliability and validity. ApeCoin scored 90 out of 100 for security as of the time of writing. For developers that wish to contribute to the APE ecosystem, it has been confirmed to be secure to utilize.
Strong trade volume
In a market with thousands of currencies, trading volume is crucial to a new cryptocurrency’s survival. The trading volume of ApeCoin was almost $230 million as of this writing. APE is now a medium-cap digital asset as a result. The APE project has a market valuation of about $1.3 billion, making it worth more than many well-known companies. There is a great probability that APE will benefit from the daily inflow of liquidity from investors during another bull run, setting new price records in the process.
It is quite well known
APE has gained more popularity than many other current digital assets for a cryptocurrency exchange that just celebrated one month of being regarded as a crypto trading asset. It grows off of Yuga Labs’ Bored Ape Yacht Club initiative. One of the most active ecosystems in the NFT sector is found at BAYC. The Mutant Ape Yacht Club and BAYC continue to have a favorable effect on apecoin. Should there be any further information on the NFT project, the price of APE will increase as a result. APE’s popularity also increased as a result of its exchange listings.
ApeCoin has a limited quantity
It has a total of 1 billion coins available. Currently, there are 306 million APE coins in use. The complete quantity of APE could start to circulate as the years pass. The fundamental principles of supply and demand will then come into play. APE’s price will be determined by traders, perhaps reducing the token’s reliance on the Bored Ape Yacht Club. More significantly, APE may become less reliant on Bitcoin’s trading patterns.
Disadvantages
ApeCoin investing involves risk just like any other cryptocurrency investment. The disadvantages of investing in It are listed below to help you decide if it is a digital asset that is worthwhile investing in.
Dependent on bitcoin’s price trends
Despite having a limited trading history, the cryptocurrency has shown evidence of following Bitcoin’s price trends. It makes sense that Bitcoin rules the market. On April 14, 2021, BTC, however, achieved an all-time high price of $64,863.10. BTC hit a new low of $37,332.85 towards the end of May of the same year. Since ApeCoin is a new currency, it will take some time for it to establish its value. A token may trade in recoverable zones for a very long period if it is unable to find its way into this market.
ApeCoin doesn’t have its blockchain
ApeCoin benefits from being a part of the Ethereum ecosystem in several ways. APE interacting with stablecoins, decentralized apps (DAPPs), decentralized oracle networks, non-fungible tokens, and decentralized cloud storage networks are just a few of these advantages. Contrarily, you should be aware that Binance and Tron (TRX) were ERC20 tokens when they first entered the crypto financial industry. Unfortunately, using Ethereum’s ecosystem presented them with some problems. Scalability was the main problem at the time, and this was represented poorly in transaction prices. While TRX and BNB gain from the potential of their chains, it depends on Ethereum to become a proof-of-stake currency. ApeCoin must become independent soon, or else the value of the whole project will be badly impacted by its constraints.
It’s unknown what Apecoin is worth
Major companies and one of the most popular cryptocurrency projects on the market right now support ApeCoin. That doesn’t always imply that it will be successful in the months coming up to the end of the year or after. The undertaking is new. Before the expertly predicted milestones could be determined, it had to experience several price adjustments and opposition.
