ApeCoin (MONKEY -15.51%) is crushed in today’s trading. The recently launched cryptocurrency was down about 25.7% from the previous 24-hour period as of 11:40 a.m. ET Sunday.
In addition to the bearish momentum impacting the broader cryptocurrency market, ApeCoin is also losing ground in conjunction with a recent land selloff in a metaverse that uses the token as its underlying currency. Even after the big sell-off, the APE token is still up around 30% in the last 30 trading days.
Yuga Labs, which is partnered with the ApeCoin organization and uses the token in conjunction with projects such as its Bored Ape Yacht Club non-fungible token (NFT) series, announced in March that it would be launching a new metaverse project. . Anticipation of Yuga Labs’ Otherside metaverse has helped drive price gains for ApeCoin over the past month, but the recent rollout for land purchases in the virtual world has since caused a substantial pullback in the token’s valuation.
Investors started flocking to APE ahead of news of NFT land purchases in the Otherside metaverse, and the token was up 37.2% in the previous 24-hour period. However, the cryptocurrency tumbled after land-based NFTs were sold at a flat rate of 305 ApeCoin tokens per plot rather than through an auction which could have potentially pushed prices up significantly above- above this level.
Even with the dramatic pullback in the last day of trading, ApeCoin is down only around 4.3% in the last seven days. Given the trend of volatility in the broader cryptocurrency space and the recent bearish momentum that has gripped the market, the pullback associated with the disappointment over NFT sales in the Otherside metaverse does not seem too bad.
While the organization behind ApeCoin has stated that the token is a “meme token” at its core, the token is also integrated into gaming, NFT, and Web3 projects. In addition to the momentum for the broader crypto market, it is likely that developments surrounding projects that have integrated APE will continue to impact the token’s valuation.
After today’s selloff, ApeCoin now has a market capitalization of around $4.6 billion and ranks 29th among cryptocurrencies by value.