ApeCoin Reports Positive Q4 Amid Declining Interest in Yuga Labs NFTs

ApeCoin Reports Strong Q4 Results Despite Price Decline

ApeCoin [APE], a token developed by Yuga Labs, released its quarterly report for the fourth quarter of 2023. Despite a decline in price, the report showcases positive developments within the ApeCoin ecosystem.

Positive Q4 for ApeCoin DAO

The ApeCoin DAO reported a strong Q4, with its treasury registering 348 million APE tokens as of December 31, 2023. The DAO allotted 1.3 million $APE for operational expenses and distributed 20.5 million $APE as grants.

The report demonstrates the DAO’s commitment to transparency by providing a detailed overview of grant allocations. It highlights the continuous funding of 20 approved initiatives, as well as the acceptance of five new grants by the community.

Slowed Interest in Yuga Labs NFTs

Despite ApeCoin’s positive Q4 report, the token’s performance may be impacted by the declining interest in various blue chip NFT collections developed by Yuga Labs.

The popularity of Bitcoin-based NFTs has overshadowed interest in Yuga Labs NFTs, including collections like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), contributing to APE’s overall growth. However, the sales volumes of these collections did not match the success of other NFT projects, with BAYC losing its top position to Bitcoin-based NFT collections.

Challenges for ApeCoin

ApeCoin has faced significant decline in price over the past few days. Currently trading at $1.742, APE experienced a notable drop from its recent high at $2.49. Furthermore, network growth for APE has also decreased, indicating a waning interest among new addresses.

However, the surge in APE’s trading velocity suggests an increasing trading frequency for the token, despite the declining price and network growth.

It’s worth noting that the majority of APE holders currently hold an unprofitable position, as demonstrated by the MVRV ratio. Meanwhile, the Long/Short difference reflects a higher number of long-term holders compared to short-term holders, implying a more resilient stance among APE’s long-term HODLers.