ApeCoin Shed $2.5 Billion From Its Market Cap In May

The month of May’s crypto market disaster did not fail to bring down along with it one of the “rising stars” in the crypto space, ApeCoin.

The ApeCoin price has performed well in spite of the crypto market crash. However, the bulls were still able to lift APE by about 50% higher from the coin’s low at $3.11.

APE trades at $4.25 at the time of writing. That’s an increase of 4.1% over the past seven days. It is selling below its new swing high of $4.35.

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ApeCoin Market Cap down by Half

Thursday’s data from Coingecko indicates that ApeCoin is among the top 50 crypto assets by market capitalization, having closed May with a market value of around $1.27 billion.

Although this sum appears to be large due to the fall in other digital currencies’ value, it is actually 56 percent less than its actual market value. APE’s high trading volume of $3.37 billion as of May 1 translated to a market value in excess of $4.55 billion.

A high volume of liquidation by coin holders rose on May 1 and accelerated from May 9 to 13, contributing significantly to the decrease in APE’s market value.

Experts claim this could be due to the larger geopolitical environment and the global climate. This includes uncertainties in the ongoing conflict in Ukraine.

Factors That Contribute To APE Prices Decline

It’s not just in the crypto field that things are not looking bright. The cost of living is rising and interest rates are increasing. A recession is coming, while inflation is on the rise. The US S&P 500 is currently in a bear market, and stock markets are shaky as well.

APE market capital at $1.27 Billion according to the Daily Chart | Source: TradingView.com

According to a number of market analysts, these are some of the causes chipping away at the value of APE.

APE was at its lowest point on May 1 at $20.02 and fell 21 percent to $15.69. It then dropped to $15.97 at the end of the day.

As a result of losing more than one-fifth of its value on the first trading day of the month, APE was unable to recover and continued to fall throughout the rest of May, reaching new lows.

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APE started trading at $20.02 on May 1. It reached its monthly high of $20.04 that same day. A monthly low of $5.25 was recorded on May 11. APE closed the month at $6.76.

This is a drop of 66 percent between May’s opening and closing APE prices.

Featured image by Gravitate.news. Chart from TradingView.com

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