ApeCoin, the cryptocurrency from the APE Ecosystem that includes Bored Ape Yacht Club and Mutant Ape Yacht Club is looking to jump off blockchain. Currently, ApeCoin is on Ethereum but the ApeCoin DAO is looking to potentially migrate to Avalanche or Flow.
The decision to switch from Ethereum to an alternative layer-1 comes on the heels of the launch of the Otherside metaverse. Last month, Yuga Labs, the company behind ApeCoin, launched the minting of Otherdeeds, for pieces of virtual land in Otherside.
This resulted in over $320 million in sales on the first day of launch. However, due to overwhelming traffic on the Ethereum blockchain, transaction fees skyrocketed.
Users complained that fees were as high as $2,000 per transaction, even if transactions were not processed.
Due to the transaction issues, the ApeCoin DAO is looking to move away from Ethereum, according to Coindesk.
ApeCoin’s own blockchain
On May 1, the official Yuga Labs Twitter account first raised the idea of a blockchain migration. At the time, the discussion was about launching ApeCoin on its own chain.
The change in sentiment to migrate to an established blockchain came after discussions at ApeDAO. Since its inception last year, the DAO has voted on 11 proposals, but migrating to a blockchain is not one of them.
Avalanche is an option because the EVM-compatible blockchain is committed to building subnetworks, or a smaller part of a larger public network.
ApeCoin and the APE Ecosystem could go out on their own subnet. This would lessen the burden on the entire blockchain and reduce fees.
Kevin Sekniqi, COO of Ava Labs, the company behind Avalanche, has confirmed that he has had “early discussions” with the ApeCoin DAO.
Flow blockchain, on the other hand, is focused on building for a niche market. Dapper Labs, the company behind Flow, is known primarily for the collectible card game NBA Top Shot and CryptoKitties.
Flow is expected to be able to handle the transaction volumes of the Otherside metaverse. On average, Flow handles NBA TopShot transaction volumes of more than $300,000 per day.
Both options look intriguing. Avalanche with its subnetwork and Flow with its niche approach. ApeCoin DAO and YugaLabs have a big decision on their hands. The most likely outcome, however, is that ApeCoin will exit Ethereum.