Over the last 24 hours, the price of the relatively new cryptocurrency ApeCoin (APE -6.45%) has fallen roughly 4.5%, although it continues to trade with volatility, having actually been up 6% at its high over the last 24 hours. ApeCoin looks to be taking a breather after what has been a good week in which the token is still up close to 10%.
ApeCoin only dropped about a month ago and has exploded, with the price of the coin up more than 1,100%. The token is connected to the Bored Ape Yacht Club, the organization responsible for the Bored Ape non-fungible tokens (NFTs), which depict different looking apes, each with its own unique facial expression and wardrobe. Bored Ape NFTs have become a status symbol for celebrities and extremely wealthy individuals. For instance, singer Justin Bieber purchased one for $1.3 million.
The price of ApeCoin might be down today, but it's likely just cooling off after huge gains. Possibly, the decline is due to broader market forces like inflation or the Federal Reserve's monetary outlook, which seems to have some impact on cryptocurrencies.
In recent days, there has been speculation that ApeCoin could go on an epic run like that of Shiba Inu due to the community it has built and the attention it has received from crypto investors. Also recently, David Gokhshtein, a highly influential member of the crypto community, tweeted earlier this week: "The next crypto to be listed on Robinhood is going to be $APE. I have no doubt about it." Robinhood recently announced that it was adding four cryptocurrencies to its platform, including Shiba Inu and Solana.
I do find it interesting that ApeCoin, clearly a status symbol, has become attached to this fervid community and expensive asset class. It's a different dynamic than the likes of the communities that drove up Shiba Inu or Dogecoin.
That said, the value and future of NFTs are still hard to determine. Given ApeCoin's already quick rise in price, I would expect it to be a highly speculative and highly volatile cryptocurrency, so trade with caution.