ApeCoin, the cryptocurrency designed to expand the ecosystem of the Bored Ape Yacht Club is currently racking up losses throughout December.
According to CoinGecko, the cryptocurrency made famous by the most successful NFT collection in the world sums up over 25% in losses since December 10.
$APE went from being worth $4,52 on December 11 to today trading at around the $3,42 mark.
The price drop coincides with the recent “staking” implementation of the asset. On December 12, Apecoin.io started offering staking rewards for its holders. The new feature also covers the owners of the Bored Ape Yacht Club NFT Series.
Despite the price drop, the new staking method catapulted the on-chain activity of the token. On the first day of staking, over $30 million was poured into Apecoin staking.
However, most of that activity comes from staking, due to 24% of the circulating supply was already staked.
ApeCoin Staking Explained
In the new Staking feature, Apecoin owners will have the chance to choose which pool to keep their assets. As of right now, there are four main staking pools available. According to their website, 100 million $APE ($353 Million) will be distributed between stakers.
The token’s main pool “$APE Staking Pool” will receive 30 million APE tokens, while the Bored Ape Yacht Club Staking Pool is set to receive over 47 million $APE. The remaining tokens will be distributed between MAYC and BAKC Staking Pools.
In order to stake their BAYC NFTs, the holder must possess the NFT(s) at the time of staking. Also, they must commit the NFT(s) using $APE and specify their paired pool if appropriate. If an owner of a BAYC NFT decides to sell the NFT, all the staked tokens will be lost.
Both NFT owners and $APE holders will have to own the $APE currency in order to engage in the staking mechanism.