Monat: April 2022

ApeCoin (APE), the native governance token in the Bored Ape Yacht Club (BAYC) ecosystem, has soared to a new all-time high above $18 after another huge rally on Saturday.

The price of APE rose more than 24% in intraday trades as bulls pushed higher, buoyed by positivity around further ecosystem growth. 

In early afternoon deals Saturday, APE/USD hit $18.44 on Binance to record its highest ever price. The aggregate price across major exchanges was $18.05, according to data from CoinGecko.

APE/USD currently trades around $17.36, about 17% up in the past 24 hours.

Chart showing APE-USD price movement on the 4-hour chart. Source: TradingView

According to data from CoinGecko, APE/USD has surged nearly 50% in the past seven days. It’s up more than 64% in the past two weeks.

The upside, most of it coming in the last four days, has propelled ApeCoin to a market cap of $5.06 billion, pushing it to 31st among the largest cryptocurrencies by market capitalisation.

ApeCoin surpasses Decentraland (MANA)

The broader crypto market has struggled with bearish pressure over the past several days, with Bitcoin (BTC) dipping below $40,000 as most other digital assets mirrored the performance.

ApeCoin’s rally has thus seen it overtake Decentraland (MANA) in terms of market cap.

 Decentraland, which has been the top metaverse-linked token by market value, is down by 5.3% in the past week and by more than 10% in the red over the past two weeks.

MANA/USD currently trades around $2.04, down over 1% in the past 24 hours. Data on CoinGecko shows MANA’s market cap is $3.1 billion and ranks 45th in terms of market capitalisation.

Why is ApeCoin surging?

Buying pressure around ApeCoin is likely centered on the upcoming land sale in BAYC creator Yuga Labs’ “Otherside” metaverse project.

While the project is yet to officially go live, the developer has over the past several weeks teased its rollout. The excitement amongst investors is down to a potential announcement of the use of APE in the land sale.

The sale of 100,000 land plots out of 200,000 is expected to see 30% go to BAYC and MAYC (Mutant Ape Yacht Club) holders. The rest, 70%, will be a public sale.

Whale activity has soared as a result, with data from analytics site CoinCarp showing that the top 100 APE holders account for 52.39% of the token’s circulating supply. The data shows there are currently 49, 057 ApeCoin (APE) wallets.

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Tron’s USDD will be more like Terra’s UST, and targets $10 billion in reserves, founder Justin Sun said.

Tron will launch its decentralized algorithmic stablecoin called USDD (Decentralized USD) on May 5, 2022. Tron founder Justin Sun announced the development in an open letter.

The new stablecoin will also be available on Ethereum and the BNB Chain, with this possible via Tron’s BTTC cross-chain solution.

USDD as an algorithmic stablecoin is unlike the traditional stablecoin such as Tether (USDT) or USD Coin (USDC). As such, it’s not backed by cash or other financial assets, but by cryptocurrencies.

The USDD stablecoin will be pegged to TRX as the underlying asset and will feature the “mint-and-burn” mechanism similar to that used by Terra’s UST. The mechanism should see TRX burned to allow for the minting of USDD.

Terra CEO Do Kwon has commented on the ‘mint-and-burn’ functionality and Tron’s move to launch USDD as a signal of what’s ahead in terms of the future of decentralised economies. And it’s a scenario critics fail to understand, he added.

“Decentralized economies deserve decentralized money – every blockchain will run on dect stables soon”

Algorithmic stablecoins are fast becoming the norm – protocol-issued dollars coming to every blockchain.

Detractors cannot see – currencies are ultimately backed by the economies that use them, and the future is clearly opting to use decentralized and self sovereign stablecoin💰

— Do Kwon 🌕 (@stablekwon) April 22, 2022

 “As the most decentralized stablecoin in human history, USDD will make finance accessible to all by applying mathematics and algorithms. It will exist permanently without relying on any centralized entity,” TRON DAO tweeted.

$10 billion worth of reserves

Support for USDD falls initially on TRON DAO Reserve, a decentralised autonomous organisation that is set to handle custody service of a massive $10 billion worth of reserve. The reserve, according to Sun, will comprise “highly liquid assets raised from initiators of the blockchain industry.”

The stablecoin’s early management will also involve major blockchain institutions, which together with TRON DAO, will manage the collateral and ensure full convertibility.

Terra’s UST reserves include a Bitcoin (BTC)-denominated holding set to grow to $10 billion. Currently, the reserves amount to about $1.63 billion worth of BTC. Terra also recently bought $100 million worth of Avalanche (AVAX).

TRX price

Sun’s announcement stirred interest among investors, with the price of the native TRX jumping more than 7% on Friday as the news hit the market.

The TRX/USD pair, which hit its all-time high of $0.23 on 5 January 2018, rose to an intraday high of $0.074. However, with widespread weakness across the market, it has since pared some of the gains to currently trade around $0.067.

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