ApeCoin Soars 100% as Yuga Labs Unveils ApeChain Network

The launch of ApeChain introduces automatic staking yield, igniting investor interest and pushing ApeCoin's value to its highest since April.

ApeCoin (APE), the governance token linked to the Bored Ape Yacht Club (BAYC) ecosystem, saw a dramatic price surge over the weekend, doubling in value and reaching $1.50 for the first time since April. The spike in price comes as Yuga Labs, the parent company behind BAYC, launched ApeChain, a new blockchain network specifically designed to enhance the ApeCoin ecosystem.

ApeChain, which went live on Sunday, is a Layer 3 network developed on Arbitrum One, offering compatibility with the APE token while enabling minting non-fungible tokens (NFTs), trading, and decentralized applications (dApps). According to pseudonymous analyst Elena on X (formerly Twitter), the new blockchain aims to deliver a smoother, more seamless user experience.

One of the most significant features of ApeChain is the introduction of native staking yields for APE holders. With this new system, users can lock up their tokens and earn rewards automatically, similar to earning interest on a fixed-income investment. Markus Thielen, head of 10x Research, noted the impact of this feature on ApeCoin’s recent rally.

"ApeCoin has introduced an automatic yield mode, allowing users to passively earn returns by staking their APE tokens," Thielen explained. "This new feature reinvests rewards automatically, maximizing yield over time and encouraging more active participation within the ecosystem."

This automated staking system has attracted considerable investor interest, with APE holders now able to earn rewards not only in APE but also in Ethereum (ETH) and stablecoins. The staking process reinvests the rewards automatically, which further enhances the potential yield over time.

The broader ApeCoin ecosystem has also been bolstered by the integration of LayerZero, an interoperability protocol that facilitates seamless cross-chain transactions. LayerZero’s omnichain fungible token standard allows APE holders to transfer tokens across different blockchain networks with ease, expanding ApeCoin's utility beyond its native platform.

"LayerZero's integration brings scalable and efficient transactions across multiple blockchains, enhancing ApeCoin's appeal in the broader crypto landscape," LayerZero stated.

The debut of ApeChain and its staking yield has energized the market, pushing the APE token’s value upward and sparking further discussions about the future of decentralized finance (DeFi) and NFTs within the ApeCoin ecosystem.

As the token gains traction, Yuga Labs aims to build on this momentum by encouraging more engagement through games, staking pools, and other activities within the ecosystem. The platform also plans to extend its yield-generating features to other cryptocurrencies, potentially attracting a wider user base.

With ApeCoin’s resurgence and the successful launch of ApeChain, the BAYC ecosystem looks set for continued growth and expansion, bringing further innovation to the worlds of NFTs, DeFi, and blockchain interoperability.

photo source / Blockonome