ApeCoin (APE) managed to gain more than 50% in December. The reason for APE’s impressive performance was probably the ‘staking’ service launched. The staking service launched at the beginning of December was a long-awaited development by the community. With the launch of Staking, 57.5 million APEs worth more than $250 million were locked.
Indeed, according to data provided by Nansen, 21% of these assets ( 12.2 million) are provided by the ApeCoin Foundation, while 76% are provided by unknown investors.
57.5M $APE (~$247M) has been staked
With 21% (12.2M APE) funded by the ApeCoin Foundation
Other notable stakers incl. Machi Big Brother and dingaling who have staked 903,859 APE and 378,535 APE respectively pic.twitter.com/YGxd7pYKf3
— Nansen 🧭 (@nansen_ai) December 12, 2022
An investor nicknamed Machi Big Brother has locked in $3.9 million (903,859 APE), according to Lookonchain data. Whale accounted for 1.57% of the total staked.
Is ApeCoin (APE) Staking Profitable?
Purchasing the token after the ApeCoin staking service would be a really profitable investment. As a matter of fact, whether staking is profitable or not is the subject of great debate at the moment.
The first reason why it was not profitable is that the price of ApeCoin registered a strong increase despite the bear market. Looking at the charts, the price has gained more than 50% against the dollar, BTC and ETH in less than 30 days. This increases the likelihood of a drastic correction.
The second reason is the lack of ‘lock time’, which will directly affect the staking service. As a result, staked assets can be withdrawn instantly, triggering a drastic drop.
In conclusion, the third reason that staking APE may not be as profitable as it seems is that only 36% of all tokens are in circulation. According to ApeCoin’s vesting calendar, the unlocking of shares of Yuga Labs, its founder, and various contributors will begin in the spring of 2023. An increase in supply can cause a sharp drop in price.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.