The drop in the floor price of the BAYC NFTs has a spillover effect into ApeCoin (APE), which is an important part of Yuga Labs’ virtual world called Otherside.
The NFT market has been currently under pressure with floor prices for some of the top NFT projects hitting new lows. A week back, the floor price of prominent collections like the Bored Ape Yacht Club (BAYC) dropped to its 20-month low. The floor price of BAYC NFTs dropped to 30 ETH, which is approximately $58,000 as of the current price. However, this BAYC drop has had a spillover effect on Apecoin (APE) recently.
As per data from CoinGecko, the cryptocurrency associated with Yuga Labs’ Bored Ape NFT collection has experienced a 15% decline in the past two weeks, reaching a new all-time low of $1.85 on Friday.
Amidst the challenges faced by the NFT market, ApeCoin continues to face downward pressure. Although the floor price of Bored Ape NFTs has seen a slight recovery from its recent lows, ApeCoin came very close to reaching a new bottom on Monday. It was just two cents away from its previous low set on Friday.
Last year on March 22, during the peak of the NFT market, ApeCoin made a strong debut. Soon in April 2022, the APE price touched an all-time high of $26.70 with its market cap reaching close to $7.6 billion. But since then, the price of ApeCoin (APE) has corrected more than 93% as of date.
ApeCoin and Yuga Labs
ApeCoin is an important part of Yuga Labs’ virtual world called Otherside. It acts as the main currency within the virtual world. In March, around 7,200 Voyagers participated in a playtest of Otherside, giving them a preview of the upcoming game.
The token was introduced by the ApeCoin DAO, which is a community-driven organization that allows members, including Bored Ape holders, to have a say in projects and rules.
The APE Foundation is responsible for managing the token and overseeing the operations of the DAO. Recently, new members were voted into the foundation’s special counsel, filling the seats left by Animoca Brands Chairman Yat Siu and Reddit co-founder Alexis Ohanian.
When ApeCoin was introduced, Bored Ape holders and those who owned NFTs from the Mutant Ape Yacht Club collection were eligible to claim a specific number of tokens.
Despite ApeCoin’s price is at a low point, its market capitalization is approximately $700 million, which is comparable to the total value of tokens used in other metaverse projects. CoinGecko data shows that this market capitalization is similar to The Sandbox’s SAND ($769 million) and Decentraland’s MANA ($699 million).