STEPN (GMT), a so-called “move-to-earn” token based on the Solana (SOL) blockchain, has skyrocketed since its market debut in mid-March.
GMT price went from $0.01 on March 9 to an all-time high of $3.45 on April 19, a 34,000% upward move in just 41 days (Binance data). Its huge uptrend was mainly due to the buzz surrounding decentralized finance (DeFi) projects that reward users with tokens for staying active.
For example, the price of GMT and its major rivals, including Genopets (GENE) and dotmoovs (MOOV), shot up massively in a tight 24-hour time frame, data from CoinGecko shows.
Nonetheless, the STEPN token remains the most valuable project in the move-to-earn (M2E) niche, with a market capitalization approaching $2 billion.
What is driving the GMT price up?
One of the main clues to the GMT price rally comes from the recent STEPN earnings report. Specifically, the project obtained a profit of more than USD 26.81 million thanks to “royalties” and the sale of its “NFT Sneakers” in the first quarter of 2022, according to official data.
Specifically, the purchase of NFT Sneakers allows users to play STEPN, which, in turn, allows them to earn its in-game token, called Green Satoshi Token (GST). Merchants can then exchange their GST rewards for SOL or USD Coin (USDC).
You can earn $5 for every Kilometer you run using $STEPN
I bought 20 pairs of shoes that I’m starting to rent out for free to other application users
I get 50% of the rewards from the shoes meaning passively per day i can earn $250 from 20 people running and walking 5km!
– That Martini Guy ‚¿ (@MartiniGuyYT) April 18, 2022
STEPN uses its profits to first buy back GMT, its governance token, on secondary markets (exchanges, OTC platforms, etc.) and then burns them on-chain, effectively removing them from circulation of the 600 million GMT in total.
Technical indicators indicate overbought
The latest round of buying in the GMT market has made the token overbought, based on its four-hour RSI reading, which hovers above 70, a sell signal.
Technically, the GMT/USD pair is testing its previous all-time high of $3.14 as interim support. A move below this level raises the possibility of the pair turning down towards its 50-day EMA (the 50-day EMA – the red wave) near $2.52, roughly 20% below the Apr 19 price. .
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