#ApeCoin (APE), the native token of the $APE
ecosystem, has added 66% in value over the past 24 hours.

At the time of writing, the cryptocurrency's #exchange rate has surpassed $1 and may continue to rise. Let's figure out with the help of technical indicators and onchain metrics what the reason for the sudden rally is.

The launch of ApeChain has drawn attention to ApeCoin

One of the reasons for the sharp rise in the APE price was the launch of the Layer-3 #apechain network developed by ApeCoin #DAO called Arbitrum Orbital Chain. As a result, the token is back in the top 100 cryptocurrencies by market capitalization.

The project team said on Twitter that bridges are already active and users can access the blockchain.

“Bridges are active. Transfer your tokens to ApeChain now to start earning in APE, ETH and various stablecoins,” ApeCoin announced.

Within three hours of the launch, Camelot - an Arbitrum-based DEX - reported that ApeChain volume had surpassed $5 million, a trend that received additional support from ApeCoin's overall onchain volume.

According to Santiment data, the volume has increased by nearly 3,000% in the last 24 hours and is approaching the $1 billion mark. If the figure continues to rise along with the price, the altcoin's exchange rate could exceed $1.25 in the coming days.

The APE network has recently shown remarkable growth, tracked by the number of new addresses that have begun interacting with the protocol. As of October 18, the number stood at 83. By the time of this writing, the number of participants has increased to 3,235.

This indicates that more people are starting to use the APE token. If the trend continues, demand for APE could increase, which in turn would potentially increase the price of the altcoin.

APE price prediction: a possible rise to $2

From a technical point of view, ApeCoin has come out of a downtrend that has lasted since June. All this time, the price of the altcoin fluctuated between $0.55 and $0.85.

Now, the Moving Average Convergence and Divergence (#MACD ) indicator is showing significantly positive values, which has not been the case for almost a month. MACD measures momentum, where negative values indicate bearish momentum and positive values indicate bullish momentum.

If investors remain interested in APE, its price could reach $1.47 and even rise to $2.

However, if APE holders who did not sell the token during the long slump decide to lock in profits, the altcoin will face a correction to $0.86.

The group managing ApeCoin, a decentralized autonomous organization (DAO), has decided to create ApeChain, a gaming-focused platform, on Arbitrum. Arbitrum is a popular Ethereum scaling solution.
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ApeChain will operate as a Layer 3 network and will be controlled by Ape holders. Additionally, the Ape token will serve as a means to pay for transaction fees on the platform.

ApeCoin DAO Chooses Arbitrum for ApeChain Infrastructure
Steven Goldfeder, co-founder of Offchain Labs, expressed their commitment to supporting the ApeCoin DAO in realizing its vision for ApeChain by providing the necessary infrastructure.
The announcement led to a 5% surge in APE token value, offering a welcomed break for a token that had been experiencing a consistent downtrend since its launch almost two years ago. Over the past week, APE has seen a 16% increase in value.
Last month, the ApeCoin DAO embarked on a mission to develop its dedicated blockchain, aiming to boost efficiency and lower transaction costs within the APE ecosystem. Gas fees on the Ethereum mainnet had posed adoption challenges for ApeCoin, which operates as an ERC-20 token.
After considering proposals to build ApeChain on various platforms, including Arbitrum, Optimism, and skSync, the DAO settled on AIP-378, a collaborative proposal by Horizen Labs and Offchain Labs.
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ApeChain will be developed on Arbitrum Orbit, a platform allowing the creation of customized Layer 3 appchains atop Arbitrum’s One and Nova Layer 2 network. The high throughput capabilities of Orbit chains align with the DAO’s vision of establishing a Web3 gaming platform.
Furthermore, the ApeChain roadmap includes plans to implement APE as an omnichain fungible token (OFT) powered by LayerZero, providing the token with cross-chain functionality.
Controversy Surrounds ApeChain Proposal Outcome
Despite the passing of AIP-379 with slightly over half the votes in favor, many community members expressed dissatisfaction with the result, particularly due to the significant influence of Horizen Labs, the primary author of the winning proposal.
Some community members, like Bunny, sarcastically congratulated Horizen Labs for essentially voting for themselves and securing victory in the Ape Chain proposal.
Others went further, accusing the upper ranks of the DAO of engaging in self-serving actions, raising concerns about potential conflicts of interest.
Horizen Labs’ involvement in developing APE staking had previously drawn criticism for its execution, adding to the discontent surrounding its significant influence in the ApeChain proposal.
Despite the outcome, supporters of the competing A-Team, which received 11% of the votes, remain committed to their plan to develop an Optimism-based solution, potentially leading to the existence of two competing ApeChains in the future.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Apecoin #apechain #Arbitrum #Bitcoin #Altcoin