The crypto market disaster in May did not bring down ApeCoin, one of the “rising stars” in the crypto space.
ApeCoin prices have performed strongly in the face of a severe cryptocurrency market crash. However, the bulls were still able to lift the APE by around 50% from the coin’s low of $3.11.
At the time of writing, APE is trading at $4.25, up 4.1% over the past seven days and just shy of a newly established swing high of $4.35.
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ApeCoin market cap halved
ApeCoin was one of the top 50 cryptoassets by market cap, with a market cap of about $1.27 billion at the close of May, according to data from Coingecko on Thursday.
This figure may seem large due to the decline in the value of other digital currencies, but it reflects a 56% drop in its market capitalization. As of May 1, APE’s high trading volume of $3.37 billion translated into a market capitalization of over $4.55 billion.
The massive liquidation of token holders, which rose on May 1 and accelerated from May 9 to 13, contributed significantly to the decline in APE’s market cap.
Experts say this is because of factors such as broader geopolitics and the global climate, including uncertainty about the ongoing war in Ukraine.
Factors that lead to the fall in the price of APE
It’s not just in the crypto space that things don’t look rosy. The cost of living is rising, interest rates are rising, a recession is looming, and inflation is soaring. The US S&P 500 is currently in a bear market and the stock market is also volatile.
APE total market cap at $1.27 billion on the daily chart | Source: TradingView.com
According to some market analysts, these are some of the reasons for weakening the value of APE.
On May 1, APE opened at $20.02, an intraday high of $20.04, down 21% to an intraday low of $15.69 and settled at $15.97.
Having lost more than a fifth of its value on the first trading day of the month, APE was unable to recover and continued to fall to new lows throughout the rest of May.
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APE started trading at $20.02 on May 1, reached a monthly high of $20.04 on the day, hit a monthly low of $5.25 on May 11, and closed the month at $6.76.
This represents a 66% drop between APE’s May opening and closing prices.
Featured image from Gravitate.news, chart from TradingView.com