Cryptocurrency markets offer investors hundreds of times more opportunities to earn every year. We witnessed one of them last month. Solana’s STEPN reached a record high as the GMT price increased by 34,000% in a month. How long will GMT continue to grow? We cover the details of the recent price movement and much more.
STEPN (GMT), a token for earnings using the Solana (SOL) blockchain, has shown incredible growth since its launch in March. The GMT price rose from $0.01 on March 9 to a record $3.45 on April 19. A 34,000% increase in just 41 days prompted investors to show more interest in this token.
The massive uptrend was primarily caused by the hype around decentralized finance (DeFi) projects that reward users with tokens for staying active. For example, according to CoinGecko, the prices of GMT and its main competitors, including Genopets (GENE) and dotmoovs (MOOV), rose sharply in 24 hours.
Does STEPN (GMT) have a future?
Nevertheless, STEPN remained the most valuable earnings-oriented project with a market capitalization of $2 billion.
An important clue behind the jump in GMT prices is contained in STEPN’s latest profit and loss statement. According to official data, in the first quarter of 2022, the project received more than $ 26.81 million in profit from “copyright fees” and the sale of “NFT Sneakers”. In particular, the purchase of NFT sneakers allows users to save STEPN. This allows them to earn an in-game token called Green Satoshi Token (GST). After that, traders can exchange their GST rewards for SOL or USD Coin (USDC).
STEPN uses its profits to first redeem GMT, i.e. the management token, on secondary markets (exchanges, OTC platforms, etc.), and then burn them in the chain, effectively eliminating them from circulation for a total of 600 million GMT.
On the four-hour GMT chart, the RSI reached the overbought zone. Technically, GMT/USD tested the previous record level of $3.14 as a temporary support. A move below this level opens up the possibility for the pair to fall to the 50-day exponential moving average (50-day EMA; red wave) to $2.52, but at the time of writing GMT remains 25% higher and is $3.73. As for the price, a short-term turn to support at $ 4 may lead to a more significant movement. It would be useful to keep a close eye on $3.14 on a possible pullback.