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 would officially launch on ApeChain, built on Arbitrum Orbit as an Ethereum Layer 2.
The feature is that users can transfer specific cryptocurrencies like APE, ETH, USDC, and other stablecoins to ApeChain to earn native yields and automatic compounding.
The above can be seen as ApeChain attracting liquidity using this model, while the official launch of Pump Fun - Ape Express on ApeChain ignites FOMO emotions on-chain.
Pump Fun has gained immense popularity since May this year, becoming one of the top moneymaking projects on-chain. Various copies 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 critical differences from previous copies? Which cryptocurrencies are worth noting? Finally, what data should be observed to determine whether to enter or exit ApeChain?
Let WOO X Research take everyone through it.
Why is ApeChain so popular?
APE token increase: The transmission of liquidity inevitably moves from more easily accessible areas to more challenging ones, just as the rise of public chain coins can spill over to ecosystem projects. Due to the smaller market cap of ecosystem projects, they can achieve relatively significant increases. The same logic applies to APE and ApeChain; the first step for ApeChain to gain popularity is to create demand. APE must first rise in price for the narrative to continue.
Large ecosystem investors: Unlike other Pump Fun copies, Yuga Labs NFT holders are mostly substantial on-chain whales with strong financial power. The NFT market has been underperforming this cycle, necessitating new narratives to stimulate investment from original holders into 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 and not truly productive. In a politically correct context, the likelihood of public chain projects supporting meme launch platforms is very low (except BeraChain). Most Pump Fun copies are built by small teams and often have cold starts. For users, gaining trust in marketing, branding, and familiarity is extremely costly. Yuga Labs embraces a new narrative for an old project, making the market more accepting of slightly altered copies rather than mindlessly replicating on other chains.
ApeChain meme ecosystem project
CURTIS: The leading project, conceptualized as a guide 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, Historical market cap high: £28 million, 24-hour trading volume: £18 million, 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 high: £8.5 million, 24-hour trading volume: £1.7 million, 24-hour price change: -65%
BORED: The concept means 'Bored' in BAYC.
Current price: £0.01292, Current market cap: £12.92 million, 24-hour trading volume: £1.3 million, 24-hour price change: 2.4%
Is ApeChain viable? Observe these data points.
Leading token price increase: The characteristic of meme coins is to leverage the wealth effect, attracting users to continually invest funds for purchases. If the leading coin's price increase is unsustainable, other meme coin projects will be even more precarious.
The leading project CURTIS has fallen over 50% from its historical peak. If the overall meme ecosystem is to continue developing, this cryptocurrency needs to return to its historical high.
APE trading volume: Trading volume represents investor interest in ApeChain. If trading volume drops sharply, it also signifies a decrease in demand for APE. Currently, the 24-hour trading volume on the mainnet reaches £13 million. Opening the 15-minute trading volume chart, APE peaked at £1 million at 21:00 UTC+8 on 10/20, and currently, the trading volume every 15 minutes is only £50,000 to £100,000.
ApeChain's capital inflow level: The price increase of meme coins on-chain depends on the inflow of funds. If the inflow slows down or even reverses, it can signal a failure in building the meme ecosystem.
Currently, ApeChain is experiencing a net outflow. As of 21:00 UTC+8 on 10/20, this was a turning point, synchronizing with the above trading volume time node. For players looking to participate in the ApeChain meme ecosystem, waiting for a net inflow of funds on-chain is a better choice.
