ApeCoin Surges 100% as Yuga Labs Debuts ApeChain

As a seasoned researcher who has witnessed the crypto market’s rollercoaster ride for years, I must admit that the recent surge of ApeCoin (APE) is nothing short of fascinating. Having closely followed the Bored Ape Yacht Club (BAYC) since its inception, I have to say that the launch of ApeChain and its subsequent impact on APE’s value has been a testament to the power of community-driven projects.

Over the past weekend, the value of ApeCoin (APE), the cryptocurrency associated with Bored Ape Yacht Club (BAYC) and utilized for governance and transactions within the ApeCoin system, has more than doubled, reaching a high of $1.5 for the first time since April, as reported by CoinDesk.

The gathering occurred following the unveiling of ApeChain, the long-awaited blockchain platform introduced by the ApeCoin team, headed by Yuga Labs – creators of BAYC. Construction on ApeChain was approved by the ApeCoin Decentralized Autonomous Organization (DAO) in January of this year.

The recently introduced network, a Layer 3 system built on Arbitrum One, seamlessly works with the APE token and enables users to create non-fungible tokens (NFTs), trade, and utilize decentralized applications. Additionally, it aims to improve user experience, as noted by the anonymous analyst Elena on platform X.

On Sunday, the ApeChain bridges became active, enabling users to shift their tokens over to ApeChain, thereby earning an automatic staking return on APE, ETH, and stablecoins. Staking is a term used when assets are locked within a blockchain network in exchange for incentives or rewards. This process can be likened to investing in a low-risk financial instrument that provides regular returns.

It seems that the choice to introduce native staking rewards for APE may have sparked increased investor enthusiasm towards the token, as suggested by Markus Thielen, who is the head of 10x Research.

Thielen stated in his client report that ApeCoin now offers an automatic earnings mode, enabling users to accumulate returns simply by holding their APE tokens. This newly added feature automatically reinvested rewards, leading to increased yields over time, which he highlighted as one of the key factors driving the price surge.

Thielen mentioned that the system is integral to the wider ApeCoin network, which seeks to boost token usefulness by motivating users to interact more frequently with the token via games, staking pools, and various other engagements. Moreover, this platform intends to incorporate assistance for additional cryptocurrencies generating returns, to draw in a broader range of users.

One possible explanation for the APE rally could be the deployment of LayerZero on the ApeChain’s main network. LayerZero serves as a bridge facilitating data transfer between various blockchain platforms, enhancing connectivity and functionality among them.

Integrating the APE token with LayerZero’s universal fungible token protocol allows for “smooth transfers between different chains, improving usability across numerous blockchains and ensuring fast and economical transactions,” according to LayerZero.