Should ApeCoin holders continue to HODL

Yuga Labs' ApeCoin holders face financial losses with 95% in the red. Negative sentiment, declining network growth, and short-term dominance present challenges for its price stability.

Timeline of Apecoin-ape

Cryptocurrency prices staged a strong recovery even as the Securities and Exchange Commission (SEC) continued its battle against digital coins. On Monday, the SEC launched a lawsuit against Binance and CZ, as we wrote here. And on Tuesday, it sued Coinbase, the biggest crypto company in the United States.

Crypto News: The NFT-based ApeCoin has been on a roller-coaster ride this year as it has shown both unpredictable highs & lows. Recently, the DAO governing the APE project, voted in favor of a community proposal that would result in the development of an Accelerator that promotes the incubation of projects utilizing ApeCoin tokens (APE)

While ApeCoin (APE) and Chainlink (LINK) struggle to gain traction, Sparklo (SPRK) is soaring and capturing the attention of market analysts and investors alike. With its novel approach to trading precious metals, this Ethereum-based platform has piqued the interest of investors.

STX, on the other hand, is the native cryptocurrency of the Stacks network, used to power smart contracts for bitcoin, reward miners, and allow holders to earn bitcoin by staking.Balancer, finally, is a decentralized finance (DeFi) protocol running on top of Ethereum that seeks to incentivize a distributed network of computers to run a decentralized exchange where users can buy and sell any cryptocurrency.

Yuga Labs' ERC-20 token ApeCoin (APE) experienced a brief surge in price on the South Korean cryptocurrency exchange Upbit, with prices reaching $90.00 per token before a sell-off reduced most of the gains. The spike was attributed to retail frenzy and trading restrictions on the exchange.

ApeCoin, or simply APE, recently stole the show on the crypto market, soaring 2,000% on Upbit, Korea's largest exchange. The sudden jump in value caught the attention of investors and analysts, prompting questions about the reasons behind this crypto-madness.

The ongoing downfall in Apecoin price hit a minor roadblock as the traders struggled with broader market uncertainty. With buyers using this indecisiveness to their advantage, the Apeprice ended a daily chart pattern on a bullish note intensifying the underlying buying momentum.

The cryptocurrency bear market in 2022 not only hurt the price of tokens, but it also damaged the booming non-fungible token (NFT) market. Data from Cryptoslam.io saw NFT sales peaking at $4.9bn in sales worldwide in January 2022, but they slumped to only $560m during December.

In a tweet to the ApeCoin [APE] community, PeckShield Alert mentioned that there was a serious threat linked with staking the token. As a way of explaining the danger and encouraging holders of APE and Bored Ape Yacht Club [BAYC] to mitigate the risks, the tweet referenced an example.

The sudden increase in certain metrics for ApeCoin [APE] caught many off-guard, especially since there had been no significant activity for quite some time. In 2022, ApeCoin broke into the $20 range, and it seemed reasonable to assume that the upward trend would continue.