Arbitrum Unveils Cutting-Edge Technology for Enhanced Efficiency and Performance
Apecoin experienced a significant price surge, surpassing $1.90 for the first time in six months, following the community’s approval of a proposal to launch a new project on the Arbitrum network. The BoredApeYacht Club governance token, which had seen a decline in value in 2023, has seen a positive turnaround in 2024 due to strategic whales’ buying behavior. While the impact of the partnership with Arbitrum on APE’s price reaching the $2 milestone is yet to be seen, the recent surge of 21% in Apecoin’s price has paved the way for the launch of ApeChain on Arbitrum.
The decline of investor interest in the global NFT sector has had a significant impact on Apecoin’s BAYC ecosystem, resulting in a steep drop in the native APE token price. However, the Apecoin DAO has recently initiated efforts to revive the once-prominent NFT ecosystem, leading to a positive turnaround. On February 16, the ApecoinDAO voted in favor of building ApeChain, a dedicated blockchain that will scale APE and support the growth of the ApeCoin ecosystem. After a landslide victory, Arbitrum’s Horizen sidechain was chosen, garnering 51% of the votes.
The decision resonated with Apecoin investors, resulting in a volatile price action. APE’s price experienced an 18% gain in the first half of February 15, and after the community proposal was passed in favor of Arbitrum on February 16, the rally continued, driving the price of APE to a six-month peak of $1.90 on February 19. However, there was a 13% pullback in the last 48 hours between February 19 and February 21, sparking concerns of a bearish sell-the-news cycle.
Despite the recent price volatility, on-chain data indicates that Apecoin whale investors have maintained their bullish sentiment. Corporate entities and high net-worth whale investors within the Apecoin ecosystem have continued to accumulate APE tokens, with approximately $40 million spent on acquiring 21.8 million APE since January 1. This accumulation suggests confidence in the project’s long-term prospects and belief in the positive outcomes that will result from the ApecoinDAO’s initiatives, including the partnership with Arbitrum.
Given the bullish sentiment observed among whales and the potential boost to the ecosystem from Apechain, it is likely that APE’s price will rebound towards $2 in the coming weeks. However, APE bulls must first defend the $1.50 support level to have a chance of an early rebound. If this level is breached, APE’s price could potentially decline to $1.
Despite currently trading 95% below its all-time high price of $26.7, Apecoin’s growth prospects may attract investors looking to capitalize on tokens at a lower price. Additionally, bullish news from the NFT sector may further encourage APE whales to continue their buying trend, potentially leading to an early price rebound towards $2.
