- Apecoin surged 70% on Sunday as Yuga Labs launched the Apechain mainnet and launched staking rewards.
- Apechain, a layer 3 community constructed on Arbitrum, will likely be powered by Yuga Lab's meta model, Otherside.
Yuga Labs, creators of the Apecoin token, Bored Ape Yacht Membership and Mutant Ape Yacht Membership, and present homeowners of Crypto Punks and Meebits NFT initiatives launched Apechain, a Layer 3 community on Arbitrum on Sunday.
Apechain was first voted in January 2024 by ApeDAO and was constructed as a extra scalable resolution for the metaverse studio undertaking referred to as Otherside and the rising ecosystem of Yuga Labs.
Whereas the studio initially launched its NFT collections on Ethereum, the scalability points that plagued its Otherside NFT land minting proved insurmountable.
The Rise of Layer 3 Networks
Apechain is among the largest NFT and metaverse initiatives within the crypto area, however in the end it’s one in every of many initiatives that determined to construct a layer 3 community as an answer to the excessive charges and inelasticity of Ethereum.
Not like Layer 2 networks reminiscent of Arbitrum, which function common scaling options, these Layer 3 networks of their present iterations have been project-specific, often constructed for a single ecosystem (reminiscent of Xia's community on Arbitrum, which is game-specific, or Degen on Base which is particular to content material creators on Farcaster).
Within the case of Apechain, the community will assist all initiatives within the Yuga Labs ecosystem, from video games to NFT collections and even DeFi functions. A buying and selling platform referred to as TopTrader has already launched and is working a buying and selling marketing campaign to draw customers.
One other utility for Apecoin
Nevertheless, essentially the most bullish case for Apecoin is the added utility from exercise on Apechain. APE is the principle coin for transactions, NFT mining and participation in dapps that will likely be constructed on Apechain.
APE closed at $1.5 on Sunday, up 71% following the announcement of the community's launch, and up 15% on Monday on the time of writing.
