ApeCoin (APE) Spikes 130% after Launch of Layer-3 Blockchain ApeChain

The price of the token ApeCoin spiked by a massive 130 percent following the launch of layer-3 blockchain, ApeChain, by Yuga Labs. That huge uptake in trading in ApeCoin resulted from new utility within the ecosystem of Yuga Labs as well as enormous trading volumes.

ApeCoin (APE) Price Jumps After ApeChain Debut

Price of ApeCoin (APE) surges 130% on October 21, after closing up 24.3% over the last four days on hype about long-awaited launch of ApeChain. According to Cointelegraph data, APE shot from a low of $0.861 on October 20 into a six-month high of $1.75 by October 21. At the time of writing, tailed, the ERC-20 governance token sells for $1.53, representing a 16.5% rise in the last 24 hours and 125% growth in the last week.

ApeChain boosts APE utility and demand.

A lot of the increase in ApeCoin can be seen in the launch of ApeChain, a layer-3 blockchain built by the ApeCoin team, under Yuga Labs. The blockchain went live on October 20 and made it possible to execute a transfer of APE tokens, Wrapped Ethereum (WETH), USD Coin (USDC), Tether (USDT), and Dai (DAI) across ApeChain, Ethereum, and Arbitrum networks.

This would further increase the utility of ApeCoin within the Yuga Labs ecosystem. Correspondingly, this increases demand for APE tokens. The trading volume for ApeCoin increased by more than 250%, according to data from Santiment.

LayerZero Integration Boosts Interoperability

The rally of APE can be supported from another angle; it is the LayerZero Omnichain Fungible Token (OFT) standard that is now integrated into the mainnet ApeChain. LayerZero is an interoperability protocol, thanks to which ApeCoin can be used as the governance token of ApeCoin DAO and transaction fees to facilitate transactions across multiple blockchains.

Can ApeCoin Continue Its Rally?

The tremendous price swing has prompted FOMO among investors and has some even calling for further gains. However, a pseudonymous crypto trader by the name of Laxman said that the powerful momentum continues, and an even more strongly-worded statement was made by another trader, CryptoBull_360, stating that APE may even be set to see a 260% breakout toward the $2.75 price zone with the increased demand on NFT markets.

Of course, at the RSI of 88, it is somewhat overbought and should correct soon. Still, IntoTheBlock's IOMAP model reveals that at least 23.1 million APE have been sold between $1.45 and $1.49, so there is good support for the token going downhill.

Resistance to APE comes in at $1.65, and if this level is breached, there could be a liquidation of $8.63 million in shorts.

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