Friday, July 12, 2024
Blockchain

Sharks Dominated ApeCoin APE’s Trading Volume in Q2 2023

In a recent report released by Messari, ApeCoin (APE), an ERC-20 token used for governance of the ApeCoin DAO, experienced significant changes in Q2 2023. The report provides an in-depth analysis of APE’s performance, governance, and future plans.

The report highlights that the trade volume of APE was dominated by sharks, traders with daily trading volumes between $1 million and $10 million, for the first time since APE’s inception. This shift marked a significant change in the trading dynamics of the token.

In Q2 2023, approximately 25 million APE was unlocked to non-DAO entities, and nearly 26 million APE was claimed by Yuga ecosystem asset and APE holders. This increased sell pressure potentially contributed to a 32% drop in the average APE price.

Governance within the ApeCoin DAO also saw changes with the election of two new Special Council members. This transition of power within the DAO’s special roles demonstrates the organization’s commitment to decentralization and community involvement.

WebSlinger, the administrator of the APE Foundation, completed its first full quarter in this role in Q2 2023. Despite a decline in all key metrics of ApeCoin, the daily token transfers, votes per governance proposal, and transfer volume remained higher than in certain previous quarters.

The report also noted that APE’s fully diluted valuation hit a $2 billion floor at the end of Q2’23, marking a 91% drop from its all-time high in Q2’22. Despite this, the ApeCoin DAO continued to approve proposals and allocate funds for the development of the ecosystem.

In terms of staking, APE holders and Yuga Labs’ ecosystem projects claimed 25.8 million APE in Q2’23. This followed the implementation of staking rewards in Q4’22.

The ApeCoin DAO also saw an increase in governance activity, with 34 proposals voted on in Q2 2023. Of these, 11 passed, 18 failed, and 5 were elections. The DAO approved a $480,000 grant for Forj, a subsidiary of Animoca Brands, to create a launchpad called the Ape Accelerator. This platform aims to incubate and grow projects that use ApeCoin and Bored Ape Yacht Club (BAYC) IP.

In a move to fund crypto public goods, ApeCoin DAO approved a proposal to allocate $1 million to ETH Global and ApeCoin hackathons. This initiative aims to give back to the Ethereum community, further development work around account abstraction, and introduce developers to ApeCoin.

Despite the challenges faced in Q2 2023, the ApeCoin DAO continues to demonstrate resilience and commitment to its community. The DAO’s ability to allocate and transition power without conflict, coupled with its efficient capital allocation, suggests a promising future for ApeCoin as the ecosystem continues to grow.

Image source: Shutterstock

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