ApeChain, a blockchain operating as an Orbit chain on Arbitrum One, is growing in concern regarding its long-term sustainability. The platform integrates seamlessly into Ethereum’s ecosystem, offering full EVM equivalence. However, despite its robust technical framework, including ultra-low transaction costs, rapid block times, and native yield functionalities, several key hurdles are raising doubts about its viability.
One of the major criticisms of ApeChain stems from the reliance on its native token, $APE, to power all network operations. Many see this as a “fake utility” that adds unnecessary friction for users. Moreover, while ApeChain’s native yield functionality is intended to attract users, its low profitability has deterred profit-seekers. Additionally, ApeChain’s branding, heavily tied to the BAYC ecosystem, may limit its broader appeal, which is crucial for attracting contributors from outside the ecosystem.
Besides, there are concerns that ApeChain’s isolationist approach could echo the downfall of previous blockchain projects like DEGEN. DEGEN experienced initial hype but eventually faded due to insufficient in-house resources to handle the complexities of running a blockchain. Currently, DEGEN’s Total Value Locked (TVL) sits below $1 million, highlighting the challenges ApeChain could face in maintaining user interest long-term.
On the other hand, ApeCoin ($APE), the gas token of ApeChain, has recently shown signs of potential growth. Technical analysis of $APE reveals a descending channel from April 2022 to October 2024.
The token’s price fell significantly, from a high of $20 to its current level near $1.27. However, some traders, including CryptoBull_360, expect a 260% price rebound towards $2.75, citing rising demand in NFT markets.
Read CRYPTONEWSLAND onMoreover, while ApeChain’s infrastructure may face operational challenges, its integration with Ethereum via Arbitrum One provides significant security and liquidity advantages. Nevertheless, its long-term success will hinge on attracting a broader user base and addressing concerns over its token utility.
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