The ApeCoin community has voted in favor of a proposal to build a native chain, marking a significant milestone for the project. Collaborating with Arbitrum, Horizen Labs, and Offchain Labs, ApeCoin aims to develop ApeChain, a dedicated blockchain solution.
This decision has already had a positive impact on ApeCoin’s price, which experienced a nearly 4% climb on Thursday, reaching a local peak of $1.631. With the integration of Arbitrum’s AnyTrust chains, ApeCoin’s native gas token, APE, will be utilized within the ApeChain ecosystem.
Arbitrum’s AnyTrust chains offer low-cost transactions with security guarantees, ensuring a viable solution that minimizes selling pressure on APE. By selecting Arbitrum as its tech stack and implementation partner, ApeCoin has taken an innovative approach to mitigate the selling pressure typically associated with such projects.
Furthermore, the ApeCoin DAO may sell APE to cover block posting costs to the Ethereum blockchain. By adopting AnyTrust chains, ApeCoin is able to alleviate this selling pressure, providing a more favorable environment for APE holders.
APE will serve as the core asset within the ApeChain economy, facilitating gas transactions, staking, governance, and more. Importantly, ApeChain will maintain alignment with Ethereum, ensuring the security and reliability of the network.
Looking at the price action, APE’s value currently stands at $1.627. The token witnessed a 4.09% increase on Thursday, resulting in a weekly gain of 16.70% for holders. Breaking out of its previous downtrend on February 8, APE has steadily rallied towards the 61.8% Fibonacci retracement level from its peak in December 2023.
While facing resistance levels at $1.638 and $1.748, corresponding to the 61.8% and 78.6% Fibonacci levels respectively, APE’s path to reach the December 2023 high of $1.886 seems promising. Technical indicators, such as the Awesome Oscillator and the Moving Average Convergence/Divergence, further reinforce the positive momentum, indicating a potential rally.
It’s important to note that a daily candlestick close below the 50% Fibonacci retracement level at $1.562 could signal a brief retreat before APE continues its upward trajectory. Nonetheless, with the successful approval of the native chain development and the collaboration with Arbitrum, ApeCoin is set to embark on an exciting journey towards building ApeChain.
FAQ:
1. What is the significance of the recent vote by the ApeCoin community?
A: The ApeCoin community voted in favor of a proposal to build a native chain, which is a significant milestone for the project.
2. Who is ApeCoin collaborating with to develop ApeChain?
A: ApeCoin is collaborating with Arbitrum, Horizen Labs, and Offchain Labs to develop ApeChain.
3. How has the decision to build a native chain impacted ApeCoin’s price?
A: The decision has had a positive impact on ApeCoin’s price, with a nearly 4% climb and reaching a local peak of $1.631.
4. What is the role of Arbitrum’s AnyTrust chains in the ApeChain ecosystem?
A: Arbitrum’s AnyTrust chains offer low-cost transactions with security guarantees, which will be utilized within the ApeChain ecosystem. They help minimize selling pressure on APE and provide a more favorable environment for APE holders.
5. What is the core asset within the ApeChain economy?
A: APE serves as the core asset within the ApeChain economy, facilitating gas transactions, staking, governance, and more.
Key Terms/Jargon:
– Native chain: A dedicated blockchain solution developed by ApeCoin, in collaboration with Arbitrum, Horizen Labs, and Offchain Labs.
– Gas token: A token used to pay for computational work on the blockchain network.
– AnyTrust chains: Low-cost transaction chains offered by Arbitrum with security guarantees.
Related Links:
– Arbitrum Official Website
– Horizen Labs Official Website
– Offchain Labs Official Website
The source of the article is from the blog exofeed.nl