The Bored Ape Yacht Club launched new features and this caused the token prices to fluctuate. The price of ApeCoin went up to $46, and then fell to $24. The trading volumes have been rather low as well.It is too early, however, to tell whether or not this trend will continue.
Tracking data show that ApeCoin’s APE tokens lost about $36 million in liquidations during a volatile 24 hours following the launch.
- Liquidations in the crypto market happen when the value of an asset falls below the price at which it was bought, and margin traders are forced to sell their position to avoid further losses. ApeCoin’s APE token is currently trading at $27.66, down about 9% in the last 24 hours.
Thursday’s volatility came ahead of virtual pockets of land going on sale in the popular Bored Ape Yacht Club (BAYC) ecosystem, confirming rumors from last week. The virtual land will be sold for a flat price of 305 APE.
The ApeCoin team said that the decision to create a futures market was in response to “huge demand” from the community. “We have seen an influx of new users and trading activity on our platform in recent weeks, and we want to make sure that we are able to provide our users with the best trading environment possible,” the team said.
The liquidation activity on APE was comparable to $37 million on ether futures, making them one of the most traded crypto futures in the past 24 hours. Bitcoin futures, however, continued to lead with in excess of $66.29 million.
The new APE futures market has seen a high volume of trading activity over the past week, with many speculators betting on the future price of this cryptocurrency. The recent volatility in the markets has caused some traders to incur significant losses, but others have managed to profit from these fluctuations by accurately predicting the direction that prices will take.
The price of APE. tokens has increased over 200% from mid-April’s levels of around $11, with the volatility leading to an increase in trading volume on the token’s futures. Liquidations have increased in parallel. According to market data provider CoinFlex, more than 29 million APE have been liquidated on the futures markets over the past week.
The increase in volume has led many traders to express concerns about the risk associated with these contracts and the possibility that another large drop in price could lead to even higher levels of volatility in this relatively new market. However, others continue to invest in this promising cryptocurrency, believing that its low price relative to other tokens makes it a good speculative bet.
Whether you are bullish or bearish on APE’s prospects for continued growth remains to be seen, but one thing is certain: as long as there is investor interest in cryptocurrencies, there will always be opportunities for profit somewhere in the markets.
It is unclear what the future holds for APE and other cryptocurrencies in this bear market. Some analysts are predicting a strong recovery by mid-2022 based on historical trends, while others caution that prices may continue to fall before bottoming out later this year. Whatever happens, it seems clear that the volatility of these markets will continue to keep traders on high alert.