ApeCoin (APE) Soars 7.5% as Major Investments Roll In

ApeCoin’s Recent Surge

ApeCoin (APE) showcased a remarkable rebound on March 24, buoyed by a hefty funding round led by none other than the investment giant, Andreessen Horowitz. The digital currency’s price climbed an impressive 7.5% in a single day, reaching approximately $14.50 per token. This upswing is a part of a broader recovery that began earlier in the week when APE dipped as low as $9.50. Over the week, it has accrued a staggering profit of 50%, making it one of the hottest digital assets out there since March 21.

The Big VC Boost

To put things into perspective, ApeCoin emerged into the cryptocurrency jungle just a week ago, on March 17, through an airdrop orchestrated by Yuga Labs, the brains behind the Bored Ape Yacht Club (BAYC). This collection of non-fungible tokens (NFTs) has made waves not just in the digital realm but also among celebrities and venture capitalists who consider them the crème de la crème of status symbols. In a bold move, Yuga Labs distributed 150 million APE tokens—out of a total supply of 1 billion—to Bored Ape NFT owners, handing out around 10,904 tokens each, valued at over $158,000 as of March 24.

The Perks of Holding APE

ApeCoin’s design isn’t just for bragging rights; it serves as both a governance and a utility token. Holders gain the power to vote on proposals within the ApeCoin decentralized autonomous organization (DAO). This token is expected to facilitate community-led projects that aspire to propel culture into the metaverse. According to their official site, “it will serve as a decentralized protocol layer for community-led initiatives that drive culture forward into the metaverse.” So, if your vote counts, you might want to keep your APE!

The Funding Details

In a fascinating twist, Yuga Labs allocated about 14% of its total APE supply—worth about $2 billion—to partners who helped in launching the token, including Andreessen Horowitz and Animoca Brands. The firm recently secured $450 million from these investors, ramping up its valuation to $4 billion. Along with crypto exchange FTX’s support, this funding is earmarked for expanding Yuga’s development team and fostering ambitious projects such as a metaverse endeavor dubbed “Otherside.” Could we soon be seeing Bored and Mutant Apes strutting their stuff on luxury goods?

ApeCoin’s Future: What Lies Ahead?

Now, it’s important to note that ApeCoin is still in its infancy—barely a week old—and doesn’t have enough historical data to make rock-solid predictions about its price. However, analysis of lower-timeframe charts indicates APE is navigating an upward trend within a parallel ascending channel. Traders have been seen buying at the lower trendline and selling at the upper trendline. It’s poised to reach around $15 if it keeps the momentum going. Yet, the big question looms: Can it reclaim the $14.25 support mark? If not, brace yourselves for a potential dip back down to around $13.50.