ApeCoin Futures See $36M in Liquidations After Volatile Trading

The tokens surged and sank as new features in the Bored Ape Yacht Club ecosystem went live.

Apr 29, 2022 at 8:51 a.m. UTC
Updated May 4, 2022 at 11:05 a.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Futures tracking ApeCoin (APE) tokens lost about $36 million in liquidations during a volatile 24 hours, data shows.

  • Liquidations in the crypto market occur when a trader has insufficient funds to fund a margin call, which is when an exchange asks for extra collateral to keep the trading position funded.
  • APE prices jumped to more than $27.50 on Thursday evening from $19 on Wednesday, before profit-taking saw the tokens decline to as low as $20.48 in Asian morning hours on Friday. Such movement occurred in an otherwise little-changed crypto market, with bitcoin (BTC) and ether (ETH) moving just 2% in the past 24 hours.
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APE tokens saw volatile trading in the past 24 hours. (TradingView)

  • APE has more than doubled from mid-April's levels of around $11, with the volatility leading to an increase in trading volume on the token's futures. Liquidations have increased in parallel: APE futures have racked up millions of dollars in losses – higher than usual – for their traders several times in the past weeks.
  • Thursday’s volatility came ahead of virtual pockets of land going on sale in the popular Bored Ape Yacht Club (BAYC) ecosystem, confirming rumors from last week. The virtual land will be sold for a flat price of 305 APE, developers confirmed in a tweet on Friday, which may have contributed to the demand for APE among traders. The land was initially planned to be sold in a Dutch auction.
  • Most of the liquidations on APE in the past hours arose from short traders, or those betting against higher prices. Some $24.88 million worth of shorts were liquidated, data show, compared with $11 million in longs.
  • Crypto exchange OKX saw $10 million in liquidations, the most among all exchanges, followed by Binance at $9 million and Bybit at $7.98 million.
  • The higher-than-usual liquidation activity on APE was comparable to $37 million on ether futures, making them one of the most traded crypto futures in the past 24 hours. Bitcoin futures, however, continued to lead with in excess of $66.29 million.

CORRECTION (April 29, 12:21 UTC) Corrects fourth bullet to say land pockets will be sold for a flat price. Previous version said they would be sold through auction.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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