State of ApeCoin Q2 2024

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Key Insights

Performance Analysis

In Q2’24, APE’s market capitalization declined 51% QoQ. After peaking at nearly $1.7 billion in March, it fell below the $1 billion market cap floor for the first time in 2024. This followed a period of growth for the overall crypto market from Q2 2023 to Q1 2024. However, broader market corrections in the face of an overall Q2’24 market decline contributed to APE’s market cap decline. The unlock of 48.6 million APE tokens in Q2 increased sell pressure, potentially adding to the downward price movement throughout the quarter.

An additional 46.8 million APE (7.4% of the Q1 circulating supply) was unlocked in Q2’24. Of this, 22 million APE went to the DAO Treasury, and 25 million APE went to non-DAO entities. The DAO plans to issue or sell APE to fund DAO proposals contingent on them being passed. Alternatively, non-DAO entities are free to sell once their funds are unlocked. In Q2’24, roughly $7.8 million (7.9 million APE at $0.98/APE) was committed to passed proposals. As of the quarter’s end, 68.3% of the maximum supply (683 million APE) was in circulation, up 7.4% QoQ.

Staking

Trade volume across all trade categories dipped 69% QoQ, reflecting an overall decrease in trade activity in Q2 and in line with a general market decline. Large volume traders (accounts with 1-day trading volumes greater than $1 million) retained dominance in Q2, though their combined share slightly decreased to 60% from 63% in Q1. Whales (greater than $10 million) maintained a stable presence with 13% of the trade volume, while sharks (between $1 million and $10 million) saw the most reduction, although contributing 47% to Q2’s trade volume. This shift may indicate a slight redistribution of trade volume, with medium-sized traders like dolphins (between $500,000 and $1 million) and seals (between $100,00 and $500,000) slightly increasing their share towards the end of Q2.

APE’s average transfer velocity fell from 2.9% to 1.7% QoQ, marking a new low. The steady decline and low volatility may be indicative of existing holders actively using the asset for governance or less overall activity (trading and transfers), possibly due to the market correction in Q2. Compared to Q1, Q2 saw more pronounced spikes throughout the quarter, particularly in early May 2024. These spikes suggest periods of heightened activity, potentially due to larger isolated transfers in response to Q2’s overall market sell pressure. Until the pending launch

New APE holders are defined as addresses receiving APE for the first time. This metric excludes new holders using centralized exchanges to custody their assets. The inflow of new APE holders fell to 24% QoQ, a new low from its peak in Q3 2023, as APE price fell below $1.

Q2’24 saw more proposals published (95% QoQ) and passed (50% QoQ) compared to Q1. Although, Q2 witnessed the lowest average vote per proposal (down 41% QoQ). The decline in votes per proposal may be due to the nature of proposals, as less compelling proposals may have attracted fewer votes.

In Q2’24, ApeCoin DAO allocated $7.8 million to fund approved proposals, a 47% decrease from the previous quarter. Although the number of proposals nearly doubled, average votes per proposal dropped, likely due to voter fatigue and fewer controversial issues. APE’s market capitalization and token price fell by 51% QoQ, with daily average token transfer volume and average DEX swap size declining by 50%. This period of reduced activity and funding indicates a cautious approach adopted by APE holders amid broader market declines. Meanwhile, the DAO’s governance structure continues evolving with new elections and ongoing strategic initiatives to expand the ApeCoin ecosystem.

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