Written by: WOO
Background: Apecoin is building Apechain to enter the meme battlefield.
Apecoin surged nearly 100% in a single day on October 20, due to the announcement that ApeCoin is officially launching ApeChain, which is built on Arbitrum Orbit as an Ethereum Layer 2.
A notable feature is that users can transfer specific tokens such as APE, ETH, USDC, and other stablecoins to ApeChain to earn native rewards and automatic compounding.
The above can be seen as ApeChain using this model to attract liquidity, while the official launch of Pump Fun - Ape Express on ApeChain ignites FOMO sentiment on-chain.
Pump Fun has gained immense popularity since May this year, becoming one of the top earning projects on-chain. Various imitation projects have emerged, but none have been able to replicate Pump Fun's successful model. Why is Ape Express receiving so much market attention this time? What are the key differences from previous imitation projects? Which tokens are worth paying attention to? Lastly, what data should we observe to determine whether to enter or exit ApeChain?
Let's have WOO X Research take a look together.
Why can ApeChain become popular?
APE token rise: The transmission of liquidity must flow from easier to access areas to more difficult ones. Just as the rise of public chain tokens can spill over to ecosystem projects, smaller market cap ecosystem projects can also achieve considerable price increases. The logic applies similarly to APE and ApeChain; the first step for ApeChain to become popular is to create demand, and APE must first rise in price for the narrative to continue.
Many ecosystem whales: Unlike other Pump Fun imitations, many holders of Yuga Labs series NFTs are on-chain whales with substantial financial resources. The NFT market has been underperforming this cycle, necessitating a new narrative to stimulate original holders to invest in related product markets.
Official support: If a meme is supported by a public chain, it may face market skepticism from a building perspective, easily labeled as merely speculative without real contributions. Under politically correct circumstances, the likelihood of public chain projects supporting meme launch platforms is extremely low (except for BeraChain). Most Pump Fun imitations are built by small teams and are often cold-start projects. For users, gaining trust in terms of marketing, branding, and familiarity comes with high costs. Yuga Labs embraces a new narrative for an old project, making the market more receptive to slightly altered imitations rather than mindlessly copying on other chains.
ApeChain meme ecosystem project
CURTIS: Leading project, the concept is a guiding NPC in OTHERSIDE named CURTIS, characterized by wearing a Hawaiian shirt and a captain's hat.
Current price: 0.01318, Current market cap: 13.18 million USD, Historical market cap peak: 28 million USD, 24-hour trading volume: 18 million USD, 24-hour price change: -6%
CIF: The first meme coin on APE Express.
Current price: 0.001909, Current market cap: 1.9 million, Historical market cap peak: 8.5 million, 24-hour trading volume: 1.7 million USD, 24-hour price change: -65%
BORED: The concept refers to the meaning of 'Bored' in BAYC.
Current price: 0.01292, Current market cap: 12.92 million USD, 24-hour trading volume: 1.3 million USD, 24-hour price change: 2.4%
Is ApeChain viable? Observe these data.
Leading token price increase: The characteristic of meme coins is to use the wealth effect to attract users to continuously invest funds. If the leading token's price increase is not sustained, other meme coin projects are in a more precarious position.
The leading project CURTIS has dropped over 50% from its historical peak. For the overall meme ecosystem to continue developing, this token must first return to its historical peak.
APE trading volume: Trading volume represents investor interest in ApeChain. A sudden decrease in trading volume also indicates reduced demand for APE. Currently, the 24-hour trading volume on the mainnet is 13 million USD. Opening the 15-minute trading volume chart shows that APE peaked at 1 million USD at 21:00 UTC+8 on 10/20, but currently, the trading volume is only 50,000 to 100,000 USD every 15 minutes.
ApeChain's capital inflow level: The price increase of on-chain meme coins depends on the influx of funds. If the inflow slows down or even reverses, it could indicate a failure in creating a meme ecosystem.
Currently, ApeChain is experiencing net outflows. At 21:00 UTC+8 on 10/20, this was a turning point, synchronized with the trading volume time node mentioned above. For players wanting to participate in the ApeChain meme ecosystem, waiting for net inflows on-chain is a better choice.
