Last week, Ape Coin (APE) price managed to rebound above $2 after dropping to a new all-time low of 1.82 on July 13. But a decline in Ape Coin user acquisition rate threatens to deflate the bullish momentum. 

The altcoin market rally, fuelled by Ripple’s victory against the SEC, helped propel Ape Coin above the $2 resistance level. The in-depth on-chain analysis highlights critical risk factors that could hamper APE’s price recovery mission. 

Ape Coin User Acquisition Rate Has Dropped to a 3-Month Low

While APE price has increased marginally, the decline in the Bored Ape Yacht Club (BAYC) native token user acquisition rate is now raising concerns. 

Glassnode said Ape Coin registered only 190 new wallet addresses on July 25. This is its lowest user acquisition rate since May 29, when it recorded 176 new wallet addresses.

The new Addresses metric roughly estimates the number of new users joining a blockchain network daily. If it drops drastically, it stunts the network growth, and ultimately, the underlying token could struggle to find new demand.

Notably, Ape Coin is committed to a monthly token emission of about $30 million until February 2026. Hence, the inability to attract new demand to absorb that inflationary pressure could negatively impact Ape Coin price momentum. 

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Author: Ibrahim Ajibade

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