ApeCoin, Axie Infinity Plummet Double-Digits as Bitcoin Fixes

Several NFT– Adjacent cryptocurrencies including ApeCoin and Axie Infinite, recorded double-digit losses in the last 24 hours.

ApeCoin (APE), the Ethereum-Based symbol for growth Bored Monkey Yacht Club ecosystem, has lost nearly 17% of its value in the last 24 hours and is currently trading at $13.30, according to data from CoinMarketCap.

APE is now the 31st largest cryptocurrency with a market capitalization of $3.8 billion. Today’s bearish price action now puts the token 66% below 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 last 24 hours.

AXS hits an all-time high of $165.37 in November 2021, down 82% and currently trading at $28.52, according to data from CoinMarketCap.

What is driving the Axie crash, ApeCoin?

The main factor behind today’s price action is likely to be the Federal Reserve’s recent moves to raise interest rates by half a point on Wednesday.

While financial markets, including cryptocurrencies, briefly enjoyed a price runyesterday Bitcoin, Ethereum and major market indices such as the Nasdaq industrial average and the Dow Jones plummeted. Major stocks such as Alphabet, the parent company of Google, Microsoft and Facebook’s Meta, also dropped by double digits.

Meanwhile, Bitcoin is down over 8% in the last 24 hours and is currently trading at $36,132. Ethereum is also changing hands at $2,710, down 7% in the last 24 hours.

Still, some key narratives can add additional selling pressure on both AXS and APE.

The volatile price action behind the APE mainly revolves around the mint Otherdeeds NFT over the weekend.

Users were invited to purchase deeds to plots of land within Bored Ape’s yet-to-be-released metaverse Otherside. Initially billed as a Dutch auction, the Otherside team later said that each share would be sold at a fixed price of 305 APE.

Prior to the mint on April 30, APE was trading above $26 per token. Upon launch, however, the APE lost 50% of its value and is currently trading at $13.30. This drop may, in part, be due to holders turning in other currencies now that they have collected their deed.

The Otherside collection also faced a serious backlash for its inefficient code, robbing users of more than $200 million in gas fees. This may also have made APE investors bearish.

As for AXS, the project saw less and less activity from their highs last year.

According to data provided by NansenAxie’s Ronin daily revenues have declined by 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 creation fees. A crafting 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 trades in the NFT market has been constantly growingSpecific concerns within these ecosystems appear to keep AXS and APE under serious pressure.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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