ApeCoin Attracts Traders in PowerTrade’s Altcoin Options Market

On Oct 22, 2024 at 10:44 am UTC by · 2 mins read

ApeCoin has doubled in value, with bullish options activity suggesting traders are optimistic about further growth, driving up open interest by over 800%.

ApeCoin APE $0.50 24h volatility: 10.5% Market cap: $397.32 M Vol. 24h: $48.69 M , the governance and utility token of the APE ecosystem, has seen its value double over the past weekend, rising to $1.50 and pulling the broader altcoin market upwards. This remarkable price action, which has garnered attention across crypto trading platforms, appears to be driven by growing bullish sentiment and a surge in options activity.

According to data from PowerTrade, a derivatives-focused crypto exchange, open interest in APE options has skyrocketed by over 800%, reaching 263,000 contracts in just one day.

What’s even more notable is that a major portion of this open interest – more than 80% – is tied to call options, indicating traders’ growing optimism for further price appreciation. Call options provide the buyer with the right to purchase the asset at a predetermined price, and heavy buying of these instruments suggests that market participants expect APE to continue its upward trajectory.

The ongoing buying interest has been concentrated on contracts expiring soon, particularly on October 22 and October 25. Some traders are even placing bets on APE reaching as high as $2.20, nearly 50% higher than its current price.

ApeChain Mainnet and LayerZero Integration

The recent bullish sentiment surrounding ApeCoin is partly attributed to the upcoming ApeChain mainnet launch, as well as the integration of LayerZero, a key technology partner. These developments could strengthen the ecosystem’s infrastructure, offering a solid foundation for future utility and adoption within the APE community.

Since its launch in 2022, ApeCoin has faced major market volatility, experiencing a dramatic fall from its all-time high of nearly $40 to as low as $0.50 just three months ago. However, its association with the wildly popular Bored Ape Yacht Club and Yuga Labs has helped revive interest in the token, sparking hope for its long-term viability.

With APE’s price now hovering around $1.46, despite a 5% drop in the last 24 hours, the token has gained an impressive 90% over the past week. The recent price surge has also boosted ApeCoin’s market capitalization, which has jumped from $476 million to $1.1 billion over the past month.

PowerTrade’s role in fueling this resurgence cannot be overlooked. The platform, which offers European-style USD-settled options, has facilitated record volumes in APE options. It has plans to expand its offering to include altcoins such as EIGEN, APT, ARK, and PYTH.

On Monday alone, PowerTrade registered $50 million in trading volume across options tied to 44 altcoins.

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