Axie Infinity and ApeCoin crash by double digits while Bitcoin corrects as we can see more in our today’s latest altcoin news.
The NFT-based coins like Axie Infinity and ApeCoin plummeted amid the wider marekt rout and posted double-digit losses in the past day. Apecoin as the ETH-based token for the BAYC ecosystem shed about 17% of its value in the past day and now trades at $13.30 as per the data from CoinMarketcap. APE is the 31st biggest coin with a market cap of $3.8 billion and today’s bearish action put the token 66% down from the ATH of $39.40 recorded in March 2020. Axie Infinity took as the token that powers the game, dropped by 15% in the past day. AXS hit an ATH of $165 in November 2021 marking a drop of 82% and now trades at $28.52.
Nearly $100M has been spent on gas for the BAYC land sale in one hour. This is money that could have gone to Yuga or stayed in user’s pockets.
The contract had nearly zero gas optimizations. I’ll explain a few gas optimization tricks that could have saved many millions below 👇 pic.twitter.com/CsYvWdEQKc
— Will Papper ✺ (@WillPapper) May 1, 2022
The primary driver behind the latest price action is the recent moves from the Federal Reserve to raise the interest rates by half a point. The financial markets including crypto enjoyed a slight run-up in prices and BTC and ETH as well followed alongside indices like Dow Jones and NASDAQ but then plummeted rapidly. Major stocks like google’s Alphabet, Facebook’s Meta, and Microsoft dropped by double digits as well. In the meantime, BTC is down by 8% in the past day and now trades at $36,132 while ETH is also changing hands at $2710 making a 7% drop in one day.
A few key narratives could add another bout of selling pressure on both coins. The volatile price action behind the APE coin revolves around the OTherdeeds NFT mint over the weekend. The users were invited to purchase deeds to plots of land in the Bored ape metaverse Otherside and announced the dutch auction with the Otherside team saying that each deed will be sold at a flat price of 305 APE. Leading up to the mint of April 30, APE traded at $26 per token and the APE then lost 50% of hte value and now trades at $13.30. The drop could be due to the holder rotating into other coins which scooped up their deed so far. The Otherside collection faced a lot of backlash for the code and robbed users of more than $200 million in gas fees which turned APE investors bearish.
As for AXS, the project saw less and less activity since the high last year. According to the data provided by Nansen, the revenues on Ronin saw a decline of 99% from the ATH of $17.6 million reproted in August 2021 to only $6000 today. Axie Infinity generates revenue via marketplaces and breeding fees which is 0.5 AXS and charged whenever a new creature is created with a market fee of 5.25% charged when Axies is traded.
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