- Polygon co-founder submitted a proposal to the ApeCoin DAO governance forum for the creation of its own zero-knowledge Layer-2 blockchain.
- APE has seen a significant decline in demand since the month began.
In a new proposal dated 10 October, Polygon’s co-founder Sandeep Nailwal suggested that ApeCoin DAO develop its own zero-knowledge Layer-2 (zk-L2) blockchain using the Polygon Chain Development Kit (CDK).
Read ApeCoin’s [APE] Price Prediction 2023-2024
The proposal comes nearly 18 months after Yuga Labs, the creators of the Bored Ape Yacht Club NFT collection, tweeted that ApeCoin “will need to migrate to its own chain in order to properly scale” following its “Otherside” NFT minting event in April 2022, which resulted in the highest gas fees in the history of the Ethereum [ETH] network.
We’re sorry for turning off the lights on Ethereum for a while. It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale. We’d like to encourage the DAO to start thinking in this direction.
— Yuga Labs (@yugalabs) May 1, 2022
The ApeCoin DAO voted in a later proposal to keep ApeCoin within the Ethereum ecosystem. However, the question of an ApeCoin-specific chain remains open.
In his proposal, the co-founder argued in favor of Polygon’s CDK for the proposed zk-L2 network by highlighting its security, low fees, shared liquidity, customizability, and interoperability, making it suitable for achieving ApeCoin DAO’s goals.
According to Nailwal:
“ApeChain will provide the ApeCoin DAO with an efficient, secure, and decentralized execution environment upon which ApeCoin DAO projects can be built to help realize this mission.”
APE holders have it rough
At press time, the project’s native token APE traded at $1.04. In the last month, its price has declined by 10%, according to data from CoinMarketCap.
The month so far has been marked by a drop in demand for the metaverse-based token. On 2 October, the token attained a price peak of $1.29 and has since declined by 19%.
Source: CoinMarketCap
An assessment of the movements of key momentum indicators on a daily chart lent credence to the above position.
After the bears initiated a downtrend on 3 October, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI), initially positioned above their respective center lines, began trending downwards.
As of this writing, the token’s MFI approached the oversold zones at 28.34, while its RSI was spotted at 35.37. This suggested that token sell-offs have significantly exceeded accumulation in the last two weeks.
Moreover, APE’s Parabolic Stop and Reverse (SAR) indicator – which identifies potential reversal points in an asset’s price direction- confirmed the market’s downtrend.
How much are 1,10,100 APEs worth today?
When the dots that make up the indicator are positioned above the price, it indicates a downtrend. Also, when these dots are closely packed together, it suggests that the trend is strong. All of these were true in APE’s case at the time of writing.
Lastly, its Aroon Down Line (blue) at 78.57% indicated that the downtrend was strong, and APE’s most recent price low was reached relatively recently.
Source: APE/USDT on TradingView
