Bored Ape Yacht Club (BAYC) was among the top surprise hits in the crypto industry last year.
Developed by Yuga Labs and minted on the Ethereum blockchain, each NFT in the collection represents a unique, visibly bored ape with different looks, traits, and accessories.
Most importantly, holding one of the 10,000 BAYC and 20,000 Mutant Ape Yacht Club (MAYC) avatars makes the owner an exclusive member of an active community with access to merch, events, products and services, as well as the ability to use their ape as they see fit with flexible licensing.
Celebrities and stars like Eminem, Snoop Dogg, Madonna, Tom Brady, Neymar, Steve Aoki, Jimmy Fallon, and Paris Hilton quickly adopted the concept of Bored Apes. At the same time, BAYC NFTs have been utilized for TV shows, bands, merch, and even fast-food restaurants.
As a result of its popularity, BAYC features the second-most NFT sales volume to date, with an all-time volume of $2.3 billion.
This year, the project’s creators wanted to take BAYC to the next level by launching the ApeCoin (APE) token to decentralize governance via a DAO and offer investors a way to gain exposure to Bored Ape Yacht Club without holding an NFT.
Now, while ApeCoin has been down this year along with other cryptocurrencies in the space, it managed to defy the current bearish market trends by surging nearly 75% between June 18 and June 28 2022. In this article, we will explore the most important factors that could have been behind APE’s recent bull run.
But, before that, let’s start with a quick recap.
What Is ApeCoin (APE)?
Launched in March 2022, ApeCoin (APE) is Bored Ape Yacht Club’s official cryptocurrency. Based on Ethereum’s ERC-20 token standard, it functions mainly as a governance coin, empowering holders with the ability to propose and vote on important matters concerning the project’s future.
In addition to participating in decentralized governance, APE features the following utilities for users:
- Access to exclusive features, games, services, and merch
- Medium of exchange within the BAYC ecosystem
- An incentive for third-party developers to integrate APE into their ecosystems
ApeCoin has a permanently fixed supply of 1 billion coins, meaning that no minting, burning, or other mechanisms can decrease or increase the APE supply. That said, a great portion of the tokens will remain locked for multiple years until it gradually enters into circulation.
Why Did ApeCoin Surge 75% in Late June?
In the next sections, we have collected the top reasons that could have been behind APE’s recent surge. Let’s see them!
1. ApeFest 22
For Bored Ape Yacht Club members, probably the most anticipated event is ApeFest, an annual festival exclusive to BAYC and MAYC holders.
While the event took place for the first time last year, ApeFest 22 was meant to be an even greater hit this year, featuring star performers such as Eminem, Snoop Dogg, Lil Wayne, Haim, and The Roots. Furthermore, participants could enjoy an open bar, merch, and free treats from ape-themed food projects like Bored & Hungry and Champ Medici’s Bored Taco.
Since ApeFest 22 took place between June 20 and 23 at New York City’s Pier 17, the hype before and during the event likely played a role behind ApeCoin’s recent bull run.
2. Music Video by Snoop Dogg and Eminem
In addition to being among the top performers of ApeFest, Snoop Dogg and Eminem are both official BAYC members, with each artist holding one of the 10,000 NFTs in Yuga Labs’ collection.
For a popular NFT project that is centered mainly on entertainment and music, having a “theme song” created by superstars like Eminem and Snoop Dogg is excellent news for members. At the same time, the nearly 24 million views recorded on July 5 2022 translates to more hype around BAYC, which could have positively affected APE’s price in late June.
3. Rolling Stone, Breakthrough Brands, and the First ApeCoin ETP
On June 20, two days after APE’s bull run, Rolling Stone and Bored Ape Yacht Club announced their second collaboration.
As part of the partnership, the magazine and the NFT project launched two 1:1 non-fungible tokens (one BAYC and one MAYC) as an auction on the OpenSea marketplace.
However, positive news around the project didn’t stop here. A day after the collab’s announcement, consultancy firm Interbrand named Bored Ape Yacht Club as one of the 30 emerging brands with the potential to “break the US” in its annual Breakthrough Brands report.
A week earlier, crypto investment manager Iconic Funds launched the world’s first physical Exchange-Traded Product (ETP) that provides investors direct exposure to ApeCoin on Börse Stuttgart.
Can BAYC Retain the Hype Around Apes?
While the sudden popularity of NFT projects like CryptoPunks and Bored Ape Yacht Club are often dismissed as short-term hype, Yuga Labs has managed to keep interest at a high level around BAYC even after over a year since the launch of the first apes.
At the same time, ApeFest 22 as well as Snoop Dogg’s and Eminem’s music video to a collab with Rolling Stone, the launch of the first physical APE-backed ETP, and a mention in the Breakthrough Brands report have all contributed to ApeCoin’s crypto market-defying bull run between June 18 and 28.
The question now is: will Bored Ape Yacht Club manage to maintain its popularity in the future and potentially become an important pop culture trend? Or will BAYC members lose interest in the project after the hype around ape NFTs vanishes?