Apecoin presumably loses its shine to Yuga Labs‘ Otherside Metaverse as it suffers a 27% decline.
Apecoin had quadrupled from mid-April values of roughly $11 just before its recent losses, with the increased volatility resulting in a rise in trading activity on the token’s futures. Liquidations have escalated in tandem: APE futures have piled up millions of dollars in losses for its dealers on many occasions in recent weeks, which is higher than normal.
Can Yuga Labs’ Otherside metaverse take the place of Apecoin?
It might currently seem that Yuga Labs’ Otherside metaverse is on the verge take the place of Apecoin. Otherside Metaverse, a Yuga Labs project, released its maiden NFT drop to great acclaim. Yuga Labs made almost $310 million by charging 305 APE tokens for each of 55,000 Otherdeeds.
The Otherside metaverse project, in fact, sold out all 55,000 Otherdeed land NFTs offered within three hours of being public. Investors snatched up all of the NFTs in an offering that only took ApeCoin as payment.
The Otherdeed NFT mint is sold out – we are awestruck at the demand shown tonight. Apes and Mutants, the opening of the 21-day claim period is being delayed until the price of gas drops to reasonable levels. We’ll tweet when the claim opens. — OthersideMeta (@OthersideMeta) May 1, 2022
The drop brought in almost $310 million to Yuga’s coffers at 305 APE each, which traded for just under $20 at the time of the mint. Similarly, because of overwhelming demand, the project was ranked #1 on OpenSea with a floor price of 7.7 ETH.
Buyers had to go through a Know Your Customer (KYC) check and have their crypto wallets authorized on the project’s website.
According to statistics from the Etherscan block explorer, the Otherdeed mint caused gas costs on the Ethereum blockchain to jump to 8,000 GWEI as a result of the highly anticipated NFT release. The mint spent approximately $177 million in gas expenses, and Etherscan collapsed at one time due to the high demand for NFTs.
Here’s another one to add to the list of astounding statistics. Since Otherside NFT began minting, over 20,000 ETHs had been destroyed, according to ultrasonic money statistics. This demonstrated the high level of investor demand.
However, there was a minor snag on the road to this target for the project. Other than that, NFTs were sold at a fixed price, despite plans to begin the enterprise through a Dutch auction. To avert “a chemical war of historic dimensions,” this proposal was shelved. However, the team afterwards added in a tweet:
“Gas prices have settled, so the 21-day period for Apes and Mutants to claim an Otherdeed is now open.”
But the said hike didn’t last for too long- thanks to…
APE’s price may see a rebounce
APE’s price hit its second-highest level on April 28, when it reached $27.57, more than 2,650% from its mid-March launch. The price of ApeCoin, on the other hand, was retraced in the aftermath of the transaction, falling to under $17. Yuga’s profits were also reduced to $287 million.
Although, at the time of publication, Yuga’s earnings were about $299 million, indicating some improvement.
The NFT mint will cost a fixed 305 APE ($5,250 at today’s price), according to Yuga Labs. In the end, the corporation did not sell the metaverse land plots in a Dutch auction, contrary to expectations. As a result of the revelation, consumers may have felt less compelled to stockpile additional ApeCoin tokens, resulting in a decline in demand.
In response to the incident, a spokeswoman for Yuga Labs stated in a tweet posted by Wu Blockchain:
Yuga Labs：It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale. We’d like to encourage the DAO to start thinking in this direction. This means that BAYC may build its own chain, similar to the Ronin chain built by Axie.— Wu Blockchain (@WuBlockchain) May 1, 202Binance exchange Suspends ApeCoin lending following high demand2