As the altcoin market is showing signs of recovery, a notorious NFT collection is seeking to rebound its base price. Let’s take a look at what consulting giant Fool analysts say about the most successful NFT project of 2022.
This altcoin raises expectations as NFT market recovers
The NFT market has been in free fall for the past six months. Owners of expensive NFTs have seen prices drop and trading volume peaked on nearly every NFT platform. Even the Bored Ape Yacht Club, widely regarded as the most successful NFT collection ever, has not been resilient to falling prices. But things are turning around for both BYAC collectors and the crypto ApeCoin (APE), which powers the entire Bored Ape ecosystem. Entering December, base prices for Bored Ape NFTs have increased by about 34%. The price of ApeCoin continued a 31% rally. So is it time to consider investing in ApeCoin?
According to analysts, there are several options for participating in the NFT rally
Fool analysts are of the opinion that blockchains such as Ethereum and Solana, which account for the lion’s share of all NFT transaction and sales volume, will be the pioneers of the NFT rally. But the most profitable way is to list a pure NFT coin like ApeCoin. Although risky, APE lets you see all the benefits of any rally.
In general, there is a direct correlation between the price of ApeCoin and the market price of NFTs. If the prices of NFTs tend to rise, then the price of ApeCoin immediately follows. Of course, the opposite is also true. As long as any NFT recovery continues into 2023, Fool analysts are confident that ApeCoin will undo its past gains.
Bored Ape floor prices will herald the rally
The metric to monitor before listing ApeCoin is not NFT sales volume or NFT trading activity. Most people measure the general condition of the NFT market in terms of floor prices. One of the most important NFT collections to watch for this is the Bored Ape Yacht Club. Also, the fact that it’s public information means we can easily access it. Every NFT platform that sells Bored Apes will tell you what the floor price is. There are 10,000 different Monkeys in the NFT collection. The base price is the cheapest available for a Monkey in that collection. For example, currently the base price of a Bored Ape on Ethereum’s OpenSea NFT market is about $86,000. You won’t find Bored Ape cheaper than this at OpenSea.
All NFT collections take extensive steps to maintain their base price. The floor price is the best indicator of popularity, scarcity, and overall demand for an NFT collection. If floor prices are falling, NFT owners have real reason to be concerned. For example, Justin Bieber paid $1.3 million for a Bored Ape in January 2022. By mid-November its value had dropped below $75,000.
With the altcoin market stagnant, can ApeCoin continue its mini rally until 2023?
There is a very important reason why ApeCoin has been able to sustain its recent 31% rise. This is the introduction of staking rewards on the platform in early December. It is now possible to stake both your ApeCoin coin and your Bored Ape NFT and earn rewards. Staking is often considered a form of passive income in the crypto market. Therefore, any opportunity to earn passive income by keeping ApeCoin in your portfolio makes this crypto more valuable.
High risk, high reward
With the above, investing in ApeCoin comes with some risks. As we mentioned, when you invest in ApeCoin you are investing in a pure NFT crypto. The good news is that Bored Apes continues to sell close to $1 million in the middle of a crypto winter.
Also, the market is already extremely risky and ApeCoin comes with a fair share of risk and volatility. However, ApeCoin is in the discount season, down about 86% from the ATH level at the beginning of this year. Fool analysts predict that with its current price of under $4, ApeCoin could bring serious gains in the NFT bull of 2023. Apecoin analysis by different analysts cryptocoin.comWe have included it in this article.
