While cryptocurrency enthusiasts call on the death of the industry, APE rallies by another 30%
As more and more funds are leaving the cryptocurrency market, the NFT sphere is also losing a lot of the investments that previously flowed into the market and helped random NFT collections to sell out completely. But as small collections slowly die, ApeCoin, a representative of BAYC collection, is rallying again without any fundamental reason to do so.
According to the chart provided by TradingView, APE almost reached the all-time high during yesterday’s jump to $16.7. Unfortunately, during the day, it retraced to $16.1, failing to reach the new all-time high or test the previous one.
Today’s APE open remains above yesterday’s close, showing that traders could still push it high enough to break or at least reach the previous ATH. But in addition to hitting new highs, the APE can form a dangerous pattern called a “double top,” which usually marks the end of the bullish rally and sends an asset into a major retracement.
NFT industry is not the same as before
According to the volume on one of the biggest NFT marketplaces, OpenSea, the industry no longer attracts as many buyers as it did previously. The monthly trading volume on the platform decreased from $3.5 billion in February to $2.1 billion in April.
Apart from the drop in demand, the number of new collections released is also slowly decreasing, with the number of NFTs sold in the market dropping by almost 50%.
The main reasons behind such a rapid drop in the number of NFT investors is most likely the lack of quality in most collections and a high number of scams including rug pulls, exploits and others. Besides the above problems, investors are also facing liquidity issues and losing up to 100% of their investments days after minting.
