Something big might be cooking for the fungible governance token ApeCoin (APE), a recent analysis posted by on-chain analytics platform Santiment suggests.
ApeCoin went under the radar after its shot to prominence in 2022, given a relatively calm period of network activity. Now the tide seems to be changing, as according to Santiment, ApeCoin (APE) is seeing its largest network growth spike in two months.
🙉 #Apecoin has been one of the more under the radar assets of 2023 after its breakout above $26 last year. Now back to just above $4, many traders have written it off. Our latest insight looks at why network growth and address activity is worth watching. https://t.co/biK6hQwvUg pic.twitter.com/h1LGIkkZXc
— Santiment (@santimentfeed) April 7, 2023
This follows as the 1,142 new APE addresses created on April 7 represented the highest since Feb. 7.
Santiment reports increased activity on APE, with token holders increasing their balances. According to it, this might be a sign that retail investors are getting involved and also that a price surge is imminent.
Based on precedents, it says that most often when there is increased activity on the network, it can be a sign of something big about to happen.
It cited an instance of the Stargate Finance (STG) token, which saw an enormous price increase after a period of increased activity on its network.
Santiment predicts that this might also happen in the case of ApeCoin, saying ApeCoin could be in a prime position to benefit even if the market decides to turn around.
However, the unpredictability of the crypto markets might lessen this assurance.
ApeCoin surged to a high of $27.78 on April 28, 2022, ahead of the Yuga Labs Otherside sale, which raised $285 million by selling NFTs that represent rights to virtual land plots in an impending 3D world. ApeCoin was used to price the NFTs.
ApeCoin buckled the trend following the industry failures and macroeconomic uncertainty that pervaded the markets in the past year; APE now trades for around a sixth of its April 2022 highs.
However, it still sustains its ranking among the top 100 cryptocurrencies by market capitalization, clinching the 38th spot.
At the time of writing, APE was marginally higher in the last 24 hours at $4.25.