many of NFT– Neighboring cryptocurrencies, including ApeCoin and Axi Infinity It has recorded double digit losses in the last 24 hours.
ApeCoin (APE), and Ethereum-based on Code for growth boredom monkey yacht club The ecosystem, has lost nearly 17% of its value in the past 24 hours and is currently trading at $13.30, according to data from CoinMarketCap.
APE is now the 31st largest cryptocurrency by market capitalization of $3.8 billion. Today’s bearish price action has sent the coin down 66% from its all-time high of $39.40 recorded in March 2022.
Elsewhere, Axie Infinity (AXS), the token that powers the popular crypto game Axie Infinity, is down nearly 15% in the past 24 hours.
AXS reached an all-time high of $165.37 in November 2021, a drop of 82%, and is currently trading at $28.52, according to data from CoinMarketCap.
What is driving the crash of Axie, ApeCoin?
The primary driver behind today’s price action will likely be the recent moves by the Federal Reserve to raise interest rates by half a point on Wednesday.
Although the financial markets, including cryptocurrencies, I enjoyed the price hike for a whileyesterday BitcoinEthereum and major market indices such as the Nasdaq Industrial Average and Dow Jones. Major stocks like Alphabet, Microsoft, and Google’s Meta, are down double digits, too.
Meanwhile, the price of Bitcoin is down more than 8% in the past 24 hours and is currently trading at $36,132. Ethereum is also changing at $2,710, down 7% over the past 24 hours.
However, some major narratives may add additional selling pressure on both AXS and APE.
The choppy price action behind APE mainly revolves around the Otherdeeds NFT Mint over the weekend.
Users are invited to purchase land plots within Bored Ape that have not yet been launched into the Otherside metaverse. Initially announced as a Dutch auction, the Otherside team announced that each instrument would be sold at a fixed price of 305 APE.
Prior to the mint’s release on April 30, APE was trading at over $26 per token. However, after the launch, APE lost 50% of its value and is currently trading at $13.30. This decline may be, in part, due to coin holders turning into other currencies after they pooled their instruments.
Another group too I encountered a serious backlash for its ineffective token, which netted users more than $200 million in gas fees. This, too, may have turned APE investors bearish.
Nearly $100 million was spent on gas to sell BAYC land in one hour. This is money that can go into Yoga or stay in the user’s pockets.
The nodes contain nearly zero gas improvements. I’ll explain some gas optimization tricks that could have saved several million below 👇 pic.twitter.com/CsYvWdEQKc
As for AXS, the project has seen Less and less activity since its highest levels last year.
According to the data provided by NansenAxie’s Ronin’s daily revenue has fallen 99%, from an all-time high of $17.5 million reported in August 2021 to just $6,000 today.
Axie infinity generates revenue through market and breeding fees. A breeding fee of 0.5 AXS is charged whenever a new Axie creature is created, and a market fee of 5.25% is charged whenever Axies are traded.
Although the number of transactions in the NFT market was steadily increaseit appears that there are specific concerns within these ecosystems that put AXS and APE under serious stress.
Not giving an opinion
The opinions and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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