Introduction

The first quarter of 2023 has seen a significant surge in the count of Apecoin (APE) holders. This increase in the number of APE holders stands in stark contrast to the growth rates observed in the third and fourth quarters of 2022.

An Upward Trend in APE Interest

A growing interest in APE has been noted, particularly among new addresses. The popularity of this coin has also been making strides on the social front. As per recent data from Messari, a wave of new users has begun accumulating substantial amounts of APE over the previous quarter. Approximately 650 new APE holders were reportedly joining the ecosystem daily in Q1 2023.

Rapid Increase in APE Holders

The number of new APE holders in Q1 2023 drastically exceeded the totals of Q3 and Q4 2022. By the end of the last quarter, the total number of new APE holders reached an impressive 60,000.

Future of APE Interest

The rapid influx of new APE holders has led to a current imbalance, with new holders outnumbering long-term ones. This trend is supported by the shrinking Long/Short difference. New holders, driven by the potential for profit, may be inclined to sell their holdings given the right opportunity.

However, the Market Value to Realized Value (MVRV) ratio for APE currently suggests a negative profit outlook for most APE holders. If these new holders were to sell their APE in the short term, they'd likely incur losses. It seems more probable that new holders will hold onto their APE until its price growth renders it profitable. If APE's value continues to appreciate in the coming weeks, a price correction could be on the horizon.

APE's Social Momentum

APE's social momentum has been picking up speed. LunarCrush data highlights a significant surge in social mentions and engagements over the past week, with increases of 55% and 66.8%, respectively.

Positive Sentiment Around APE

Concurrent with its growing social popularity, APE's overall sentiment has shown signs of improvement. Despite being negative in the previous week, the weighted sentiment around APE has shown a positive shift in recent days.

Influence of NFT Collections on APE Sentiment

One possible explanation for the uptick in positive sentiment could be the increasing interest in the Non-Fungible Token (NFT) collections linked with APE. Collections like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) have experienced a noticeable increase in sales, as per data from NFTGO.

Whether the interest in BAYC and MAYC will be sufficient to retain APE holders for the long haul remains to be seen.

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FAQ

What has led to the increase in Apecoin holders in 2023?

The increase in Apecoin holders in 2023 can be attributed to a surge in interest among new addresses, and a growing popularity on the social front.

Will the interest in Apecoin last?

While it's difficult to predict with certainty, new holders are likely to sell their APE onceits price becomes profitable. A price correction could occur if APE's value continues to appreciate in the coming weeks.

How has the social sentiment around Apecoin changed recently?

Social sentiment around Apecoin has shown marked improvement recently. Data from LunarCrush has shown a significant increase in social mentions and engagements, and the overall weighted sentiment has shifted into positive territory.

What role do NFT collections play in Apecoin's popularity?

NFT collections associated with Apecoin, particularly Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), have seen an increase in sales. This growing interest in these collections could be contributing to the positive sentiment around Apecoin.

Will the current Apecoin holders stay in the long run?

The retention of Apecoin holders in the long run is uncertain. Factors such as the performance of associated NFT collections and the profitability of Apecoin holdings will likely influence this outcome.

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