Decentral Block Post

In January, ApeCoin (APE) had an underwhelming performance compared to metaverse-based tokens like Decentraland (MANA) and The Sandbox (SAND). APE token gained 61% compared to the 90% and 150% respective gains seen in SAND and MANA. The subdued gains can be attributed to the hefty APE staking rewards that is likely creating some selling pressure.

An upcoming unlock of around 9% of APE’s circulating supply in March 2023, along with not-so-impressive fundamentals, will add further headwinds for the token. The gains in APE will depend on the success of the blockchain gaming projects in the ApeCoin ecosystem and new partnerships between Yuga Labs and big brands.

Traders take advantage of oversized APE staking rewards

ApeCoin DAO launched its APE staking mechanism in December 2022. The APE staking pool yielded 90% annual returns in the first two months. Holders of the Bored Ape Yacht Club (BAYC) NFTs and related collections are eligible for twice the yields of around 171%, adding significant selling pressure for the token.

However, these traders are primarily interested in capturing risk-free APE gains instead of accumulating the token. Thus, they may eventually become a source of constant selling pressure.

The token has been heavily shorted in the futures market, especially after the launch of the staking mechanism. The funding rate for APE/USD perpetual contracts has been negative since December 2022.

In January, ApeCoin (APE) had an underwhelming performance compared to metaverse-based tokens like Decentraland (MANA) and The Sandbox (SAND). APE gained 61% compared to the 90% and 150% respective gains seen in SAND and MANA. The subdued gains can be attributed to the hefty APE staking reward that is likely creating some selling pressure.

An upcoming unlock of around 9% of APE’s circulating supply in March, along with not-so-impressive fundamentals, will add further headwinds for the token. The gains in APE will depend on the success of the blockchain gaming projects in the ApeCoin ecosystem and new partnerships between Yuga Labs and big brands.

Traders take advantage of oversized APE staking rewards

ApeCoin DAO launched its APE staking mechanism in December. The APE staking pool yielded 90% annual returns in the first two months. Holders of the Bored Ape Yacht Club (BAYC) NFTs and related collections are eligible for twice the yields of around 171%, adding significant selling pressure for the token.

However, these traders are primarily interested in capturing risk-free APE gains instead of accumulating the token. They thus may eventually become a source of constant selling pressure.

The token has been heavily shorted in the futures market, especially after the launch of the staking mechanism. The funding rate for APE/USD perpetual contracts has been negative since December.

Bitcoin (BTC) drifted toward major liquidity around the Feb. 13 Wall Street open as the dust settled on United States regulatory news.

BTC traders spread bids lower

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD $21,476 on Bitstamp, almost matching the weekend’s three-week lows.

As analysts expected a “choppy” day prior to key U.S. macroeconomic data, news that Blockchain firm Paxos was being sued by the Securities and Exchange Commission (SEC) added to market nerves.

BTC spot price action thus inched ever closer to a major area of bid liquidity on the Binance order book, something which Maartunn, a contributor to on-chain analytics platform CryptoQuant, dubbed “The Great Wall.”

“'The Great Wall' (price support) on Bitcoin is placed at $21,500. This morning some bids got filled. Thereby, the strength of the wall has been reduced from $25 ~ $27 million to $19 million,” he noted.

Bitcoin (BTC) starts a new week just under $22,000 as bulls fail to reclaim lost ground in February.

After modest volatility toward the weekly close, BTC/USD is still near three-week lows as a new status quo enters with $22,000 as resistance.

However, the largest cryptocurrency stands at the beginning of an important week of macroeconomic data, with plenty of opportunities for volatility to return.

These come first and foremost in the form of the January print of the United States Consumer Price Index (CPI), which will be released on Feb. 14.

Other data prints will follow throughout the week, with analysts keenly eyeing the responses of the crypto markets and U.S. dollar.