Buy this 1 Crypto if you are excited about the NFT Market Rebound

by James · December 8, 2022

For the past six months, the market for non-fungible tokens (NFTs) has been in freefall. Owners of expensive NFTs have seen prices collapse and trading volume is down across the board on almost all NFT marketplaces and all blockchains. Even the Bored Ape Yacht Club – generally considered to be the most successful NFT gathering ever – has not been impervious to falling prices and failing market sentiment.

But things have turned around both for Bored Ape NFT collectors and ApeCoin (MONKEY -2.46%), the crypto that powers the entire Bored Ape ecosystem. Heading into December, the floor prices of Bored Ape NFTs rose by almost 34%, and the price of ApeCoin had maintained a 31% rally. So is it time to start thinking about investing in ApeCoin?

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The rise in the NFT market

Investors have several options to play the NFT market rally. Most obviously, they could invest in blockchains such as Ethereum (ETH 0.68%) or Solana (SUN -1.25%) which accounts for the lion’s share of all NFT’s trading and sales volume. But the best way to play back in the NFT market is by investing in a pure NFT crypto like ApeCoin. This gives you exposure to the full upside of any rally.

Image source: Getty Images.

Generally speaking, there is a direct correlation between the price of ApeCoin and the price of NFTs in the market. If the prices of NFTs increase, the price of ApeCoin will also increase, and vice versa. As long as any NFT recovery continues into 2023, the price of ApeCoin should begin to recover some of its previous gains.

Keep an eye on the Bored Ape floor prices

If you are thinking about investing in ApeCoin, the metric is not looking at NFT sales volume or NFT transaction activity, which is how most people measure the overall health of the NFT market. Instead, the most important metric is to look at the floor price for an NFT in the Bored Ape Yacht Club collection.

This is publicly available information and every NFT marketplace that sells Bored Apes will tell you what the floor price is. There are 10,000 different Bored Apes in the NFT collection and the floor price is the cheapest current asking price for a Bored Ape available in that collection. For example, right now the floor price for a Bored Ape on Ethereum’s OpenSea NFT marketplace is around $86,000. You won’t be able to find a Bored Ape cheaper than that on OpenSea.

All NFT collections take extensive steps to protect their floor prices, and for good reason. The floor price is the best indicator of popularity, scarcity and general demand for an NFT collection. If floor prices collapse, NFT holders have a real problem. Just ask pop star Justin Bieber – he paid $1.3 million for a Bored Ape in January 2022, and by mid-November it was worth less than $75,000.

Can ApeCoin Sustain Its Mini-Rally Into 2023?

There is a very important reason why ApeCoin can maintain its recent 31% rise, and that is the introduction of stake rewards on the platform at the beginning of December. It will now be possible to stake both your ApeCoin crypto and Bored Ape NFT and earn rewards.

Staking is generally considered a form of passive income in the crypto industry, so any opportunity to earn passive income for keeping ApeCoin in your portfolio will make this crypto more valuable. Instead of having a potentially worthless crypto governance token, you now have an income generating asset. As a result, the introduction of stake rewards for any crypto is generally recognized to be a very positive event.

High risk, high reward

That said, investing in ApeCoin is not for the faint of heart. As mentioned above, when you invest in ApeCoin, you are investing in a pure NFT crypto. You hope to profit from the general upswing in the NFT market, which may or may not happen in 2023. And you are very much in the consumer’s taste. One year all the rage might be Bored Apes, the next it might be Pudgy Penguins NFTs. The good news is that Bored Apes continues to sell close to $1 million in the midst of a crypto winter.

Crypto is already very risky and volatile, and ApeCoin comes with its fair share of risk and volatility. But ApeCoin is simply too cheap, down almost 86% from its all-time high earlier this year. At a current price of $3.87, ApeCoin is a bargain like no other. ApeCoin right now is the most direct way to profit from an upswing in NFT prices in 2023.