Is ApeCoin the next Bitcoin?

No cryptocurrency is doing particularly well these days, but holders of ApeCoin (MONKEY) less than most. Bolstered by association with a popular non-fungible token (NFT) market frequented by celebrities, ApeCoin’s US dollar value is not jagged like so many of its peers.

One of these peers is Bitcoin (BTC -5.24% the once indispensable digital asset that has fallen on hard times. Perhaps the popular and resilient ApeCoin can reach the level of popularity that Bitcoin still enjoys despite the latter’s recent decline.

Coins of the Kingdom

Of the two, Bitcoin is by far the most established and known to the general public. In the eyes of many it is the cryptocurrency, and it is undoubtedly an indicator of its asset class. Very often, in the absence of market-shattering news, the prices of many other digital coins and tokens will be more or less in line with Bitcoin.

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Almost literally, ApeCoin is a completely different animal. Compared to Bitcoin, it is a baby, launched only last March (Bitcoin was born in 2009). Moreover, unlike Bitcoin with its own blockchain, ApeCoin is a Ethereumsign based on .

While it was not developed by Yuga Labs – the entity responsible for bringing the NFT market to life, the Bored Ape Yacht Club (BAYC) – ApeCoin has been adopted as BAYC’s original token. When it fell, part of the allocation was given to existing Bored Ape NFT holders, and along with other ApeCoin holders, they share the governing rights of the token’s developer, ApeCoin DAO.

Yuga Labs is expanding the Bored Ape world; in late April, he launched Otherside, a metaverse populated by the virtual creatures that give the club its name. This metaverse is still in its infancy – like ApeCoin – but trading parcels of its virtual land is already smoking hot. The Otherside Kingdom coin is, of course, ApeCoin; It is no coincidence that the price of the token peaked just before the launch of the metaverse.

Bitcoin and ApeCoin prices reflect their age and position in the cryptocurrency food chain. As the first and for many still the most important currency, Bitcoin is still very expensive despite the drastic drop in recent months – it currently trades at just over $20,300 each. Such a price can get you a lot of trendy but relatively new and untested ApeCoin as it currently costs less than $5 per token.

Is the trend your friend?

So here we have two very different digital assets. Bitcoin is an almost inevitable investment for anyone who believes that crypto has a future. Its usefulness is reportedly – some might say notoriously – limited, but that’s usually not why people buy it. Instead, many see it as a store of value and the root of what will one day be a thriving and ubiquitous digital financial ecosystem.

ApeCoin, on the other hand, is a token associated with the coolest thing happening in the NFT world right now. Note that “cool” is a relative concept here, given the decline in NFT prices largely due to the broader crypto crisis. Regardless, BAYC still holds a lot of cachet, with some of your favorite celebrities making the list of Bored Ape NFT holders (NBA star Steph Curry and singing sensation Madonna, to name just two).

There is strength and value in popularity, and while both cryptocurrencies have their fans, this is where Bitcoin should remain the incumbent. Nearly everyone who wants to roll the dice on cryptocurrencies is at least considering Bitcoin, one of the reasons for the five-figure price tag, even after the recent crisis.

Meanwhile, a big part of ApeCoin’s appeal is that it’s hot among celebrities these days. Its usefulness is even more limited than clunky bitcoin, so it depends a lot on that popularity. But as we all know, trends tend to melt quickly as celebrities (and the rest of the world) switch to the Next Cool Thing.

I have never been a strong believer in bitcoin. Still, I don’t think it will be displaced, or even challenged, by a newcomer – especially not a fashionable model with even more limited usability. So I seriously doubt that ApeCoin can become the next Bitcoin, at least in the short term.

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