Author: WOO
Background: Apecoin builds Apechain to join the meme battlefield
Apecoin surged nearly 100% in a single day on October 20, as ApeCoin announced that ApeChain, built using Arbitrum Orbit's Ethereum Layer 2, would be launched soon.
The key feature is that users only need to transfer specific tokens such as APE, ETH, USDC, etc. to ApeChain to obtain native yields and automatic compounding.
The above can be seen as ApeChain using this model to attract liquidity, and the official launch of Pump Fun - Ape Express on ApeChain has ignited the on-chain FOMO sentiment.
Pump Fun has been a hot topic since May this year, being one of the top money-making projects on the chain, with various imitations appearing, but none have been able to replicate Pump Fun's successful model. Why is Ape Express receiving so much attention from the market this time? What are the key differences from the previous imitations? Which tokens are worth watching? Finally, what data should be observed to determine whether to enter or exit ApeChain?
Let's take a look together with WOO X Research.
Why can ApeChain be hot?
APE token rise: The transmission of liquidity must necessarily flow from the easier to obtain places to the more difficult ones, just as the rise of public chain tokens can spill over to ecosystem projects, as the market capitalization of ecosystem projects is relatively small, and can achieve relatively significant gains. The same logic applies to APE and ApeChain, and the first step for ApeChain to become popular is to create demand, and APE must first be pumped up, so that the narrative can be sustained.
Large ecosystem holders: Unlike other Pump Fun imitations, the key difference is that the holders of the Yuga Labs series of Non-Fungible Tokens (NFTs) are themselves on-chain whales with strong financial resources, and the NFT market has been sluggish this cycle, urgently needing new narratives to stimulate the original holders to invest in the related product market.
Official open support: If the meme is openly supported by the public chain, it will be questioned by the market in terms of Building, and it is easy to be labeled as just wanting to speculate and not really doing anything. In the case of political correctness, the probability of public chain projects supporting meme launch platforms is extremely low (except for BeraChain). Most Pump Fun imitations are built by small teams, mostly cold-started, and for users, the cost of gaining trust in terms of marketing, branding, and familiarity is extremely high. Yuga Labs embraces a new narrative for an old project, and the market is more willing to accept a slightly modified imitation than mindlessly copying it to other chains.
ApeChain meme ecosystem projects
CURTIS: The flagship project, the concept is the guide NPC in OTHERSIDE, named CURTIS, with the feature of 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 drop 6%
CIF: The first meme coin on the 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 drop 65%
BORED: The concept is the "Bored" meaning in BAYC.
Current price $0.01292, current market cap $12.92 million, 24-hour trading volume $1.3 million, 24-hour increase 2.4%
Will ApeChain work, observe these data
Flagship token gains: The feature of meme coins is to use the wealth effect to attract users to continuously invest funds to buy them. If the gains of the flagship token are not sustainable, then the other meme coin projects will be even more precarious.
The flagship project CURTIS has retreated more than 50% from its historical high, and if the overall meme ecosystem is to continue to develop, this token must first return to its historical high.
APE trading volume: Trading volume represents investors' interest in ApeChain. If trading volume plummets, it also means a decrease in demand for Ape. Currently, the 24-hour mainnet chain trading volume has reached $13 million, and by opening the 15-minute time frame trading volume chart, APE reached a peak at 21:00 UTC+8 on 10/20, with 15-minute trading volume reaching $1 million, and the current 15-minute trading volume is only $50,000 to $100,000.
Degree of capital inflow into ApeChain: The gains of on-chain meme coins depend on the degree of capital inflow, and if the inflow slows down or even outflows, it can also announce the failure of the meme ecosystem building plan.
Currently, ApeChain is in a net outflow state, with the turning point at 21:00 UTC+8 on 10/20, synchronizing with the above trading volume time point. For players who want to participate in the ApeChain meme ecosystem, waiting for the chain to be in a net inflow state is a better choice.
