ApeCoin joins hands with Arbitrum to build its dedicated blockchain ApeChain

5 views 4:30 am 0 Comments February 16, 2024

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  • ApeCoin community accepted a proposal to build a dedicated blockchain with Arbitrum, with a 50.35% pass rate. 
  • APE will be the native gas token of the ApeChain and the use of Arbitrum’s AnyTrust chains. 
  • ApeCoin price climbed nearly 4% on Thursday, APE hit a local peak of $1.631. 

ApeCoin community voted on a proposal to build a native chain and accepted it with a majority. ApeCoin is working alongside Arbitrum, Horizen Labs and Offchain Labs for the development of  ApeChain.

The development has likely acted as a catalyst for APE price advance on Thursday. 

Also read: TRON announces plans to venture into Ordinals and Bitcoin Layer 2 solutions

ApeCoin team picks Arbitrum as tech stack and implementation partner 

ApeCoin partnered with Layer 2 scaling solution Arbitrum for the development of its native blockchain. APE token will be used as the native token for the ApeChain and Arbitrum’s AnyTrust chains will limit the resulting selling pressure on APE. 

AnyTrust chains are an Arbitrum mode for low-cost transactions with security guarantees. The selling pressure on APE is relevant since the ApeCoin DAO may sell APE to cover block posting costs to the Ethereum blockchain. Therefore, it is important for APE holders to note that the protocol has selected a tech stack that helps alleviate the selling pressure when compared to traditional options. 

APE will be central to the ApeChain economy and the proposal that was passed by the community, with a majority, states that it will be used for gas, staking, governance, and more. ApeChain will remain aligned with and derive security from Ethereum. 

APE price climbs 4% on the day

APE price is $1.627 at the time of writing. The token climbed 4.09% on Thursday and yielded 16.70% weekly gains for holders. APE price broke out of its downtrend on February 8. Following the trend reversal, APE price rallied steadily towards the 61.8% Fibonacci retracement of its decline from the December 2023 peak. 

APE price faces resistance at the 61.8% Fibonacci level at $1.638 and the 78.6% Fib level at $1.748, on its path to the December 2023 high of $1.886. 

Two technical indicators, the Awesome Oscillator and the Moving Average Convergence/ Divergence, support the ongoing trend and signal that the momentum is positive. APE is likely to rally higher. 

APE

APE/USDT 1-day chart

A daily candlestick close below the 50% Fibonacci retracement at $1.562 could imply a sweep of the support before APE resumes its uptrend.