ApeCoin Soars 100% as Yuga Labs Launches ApeChain

ApeCoin (APE), the ERC-20 cryptocurrency affiliated with the Bored Ape Yacht Club (BAYC) used for governance and transactions in the ApeCoin ecosystem, doubled in value over the weekend, surpassing $1.5 for the first time since April, according to CoinDesk data.

The rally comes as the ApeCoin team, led by Yuga Labs, the company behind BAYC, launched its highly anticipated blockchain network ApeChain on Sunday.

The analyst, nicknamed Elena, said that the new offering, a layer-3 network developed at Arbitrum One, is fully compatible with the APE token and facilitates the development of trading and decentralized applications while improving the user experience.

ApeChain bridges also went live on Sunday, allowing users to transfer their tokens to ApeChain and automatically earn staking returns on APE, ETH, and stablecoins. Staking means locking assets on a blockchain network in exchange for rewards.

According to Markus Thielen, head of 10x Research, the decision to bring native staking yield to APE has greatly increased investor interest in the token.

“ApeCoin introduced an automatic return mode that allows users to passively earn returns by staking APE tokens. This new feature maximizes returns over time by automatically reinvesting rewards,” said Thielen, explaining the catalysts for the price rally.

“The system is part of the ApeCoin ecosystem, which aims to increase the utility of the token by encouraging users to more actively engage with the token through games, staking pools and other activities. The platform also plans to support other yield-generating cryptocurrencies to attract the attention of the general user base in the market.” planning.”

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Another factor that may have helped the APE rally was the launch of LayerZero on the ApeChain mainnet. LayerZero is an interoperability protocol that allows applications to move data between blockchains.

LayerZero reported that the integration of the APE token with LayerZero’s multi-chain fungible token standard “enables seamless cross-chain transfers, increasing utility across multiple blockchains while enabling scalable and efficient transactions.”