What happened
ApeCoin (APE 3.44%) is getting crushed in today's trading. The recently launched cryptocurrency was down roughly 25.7% over the previous 24-hour period as of 11:40 a.m. ET Sunday.
In addition to bearish momentum impacting the broader cryptocurrency market, ApeCoin is also losing ground in conjunction with a recent land sale in a metaverse that uses the token as its underlying currency. Even after the big sell-off, the APE token is still up roughly 30% over the last 30 days of trading.
Image source: Getty Images.
So what
Yuga Labs, which is partnered with the ApeCoin organization and uses the token in conjunction with projects including its Bored Ape Yacht Club nonfungible token (NFT) series, announced in March that it would be launching a new metaverse project. Anticipation for Yuga Labs' Otherside metaverse helped drive pricing gains for ApeCoin over the last month, but the recent rollout for purchases of land in the virtual world has since prompted a substantial pullback for the token's valuation.
Investors began pouring into APE ahead of the release of information about purchases of land NFTs in the Otherside metaverse, and the token had been up as much as 37.2% over the previous 24-hour period. However, the cryptocurrency plummeted after the land NFTs were sold at a flat rate of 305 ApeCoin tokens per plot rather than in an auction-style sale that could have potentially driven prices significantly above that level.
Now what
Even with the dramatic pullback over the last day of trading, ApeCoin is only down roughly 4.3% over the last seven days. Given that the tendency for volatility in the broader cryptocurrency space and recent bearish momentum gripping the market, the pullback in conjunction with disappointment over NFT sales in the Otherside metaverse doesn't look too bad.
While the organization behind ApeCoin has said that the token is a "meme token" at its core, the token is also being incorporated into gaming, NFT, and Web3 projects.In addition to momentum for the broader crypto market, it's likely that developments surrounding projects that have integrated APE will continue to impact the token's valuation.
After today's sell-off, ApeCoin now has a market capitalization of roughly $4.6 billion and ranks as the 29th-largest cryptocurrency by value.
