ApeCoin (APE) Q3 2024

ApeCoin (APE) is an ERC-20 token used to govern the ApeCoin DAO, encompassing Ecosystem Fund distribution, governance rules, partnerships, and more.

Key Takeaways

ApeCoin’s market capitalization decreased ~17% QoQ in Q3 2024, while the token’s price dropped ~23% QoQ. Notably, the overall crypto market experienced a period of chop from Q2-Q3 2024. However, the higher drop in token price versus market capitalization can be attributed to 46.80 million APE (4.68% of the maximum token supply) being unlocked.

Of the 46.80 million APE unlocked in Q3 2024, 22.03 million went to the DAO Treasury, and 24.77 million went to non-DAO entities. The DAO plans to distribute or sell APE to fund select governance proposals, contingent on them successfully being passed. Alternatively, non-DAO entities can freely sell upon funds being unlocked.

As of the quarter’s end, ~72.97% of the maximum token supply (~729.71 million APE) was in circulation, up 6.84% QoQ.

ApeCoin DAO began issuing staking rewards in Q4 2022 after passing AIP-21 and AIP-22, which finalized staking parameters. APE tokenholders and Yuga Labs’ ecosystem asset holders, including Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Bored Ape Kennel Club (BAKC) received staking allocations.

Staking was implemented in early December 2022 and will last for three years. In total, 175.00 million APE (17.50% of the maximum token supply) are to be distributed to existing APE tokenholders and Yuga Labs’ ecosystem asset holders. Due to the emissions curve, the amount of APE claimed has decreased every quarter. In Q3 2024, ~10.79 million APE were claimed, ~10.83% less than the previous quarter. This trend will continue until December 2025.

APE’s daily average token velocity fell from ~1.70% to ~1.55% QoQ, marking a new low. The steady decline and low volatility may indicate that existing tokenholders are actively using the asset for governance or less overall activity (e.g., trading and transfers). Compared to Q2 2024, Q3 2024 saw more pronounced spikes throughout the quarter, particularly in mid-August. These spikes suggest periods of heightened activity, potentially due to the buzz around ApeChain and other ecosystem initiatives. Token velocity could see an increase when Otherside and ApeChain launch as APE will be used in new ways.

Despite the trend, ApeCoin DAO approved initiatives in Q3 2024 that should help attract new tokenholders and provide additional exposure for the ecosystem. Notably, AIP-454 allocates 100.00 million APE (~$76.00 million) to fund two initiatives that support and grow ApeChain. Other notable initiatives are highlighted in this report’s “Governance Analysis” section.