2 years ago
Strong hype astir move-to-earn tokens could offset the bearish technicals emerging for GMT.
STEPN (GMT), a alleged "move-to-earn" token utilizing the Solana (SOL) blockchain, has soared incredibly since its marketplace debut successful March.
GMT's terms jumped from $0.01 connected March 9 to a grounds precocious of $3.45 connected April 19 — a 34,000% upside determination successful conscionable 41 days (data from Binance). Its monolithic uptrend appeared chiefly owed to the hype surrounding decentralized concern (DeFi) projects that reward users successful tokens for staying active.
For instance, the prices of GMT and its apical rivals, including Genopets (GENE) and dotmoovs (MOOV), exploded massively connected a 24-hour adjusted timeframe, information connected CoinGecko shows.
Nonetheless, STEPN remained the astir invaluable move-to-earn (M2E) project, with its marketplace capitalization closing successful connected $2 billion.
The show of M2E tokens featuring GMT. Source: TradingViewWhat's pumping GMT?
One large cue down the GMT's terms rally comes from STEPN's caller net report. Notably, the task made a nett of implicit $26.81 cardinal from "royalty fees" and the merchantability of its "NFT Sneakers" successful the archetypal 4th of 2022, authoritative information shows.
In detail, buying NFT Sneakers enables users to play STEPN, which, successful turn, allows them to gain its in-game token called Green Satoshi Token (GST). Later, traders tin speech their GST rewards for SOL oregon USD Coin (USDC).
You tin gain $5 for each Kilometre you tally utilizing $STEPN
I bought 20 pairs of shoes that I’m starting to rent retired for escaped to different exertion users
I get 50% of the rewards from the shoes meaning passively per time one tin gain $250 from 20 radical moving and walking 5km!
STEPN uses its profits to archetypal buyback GMT, its governance token, from secondary markets (exchanges, over-the-counter platforms, etc.) and past pain them on-chain, efficaciously removing them from circulation retired of the 600 cardinal GMT successful total.
Technicals awesome overbought
The latest bout of buying successful the GMT marketplace has made the token overbought, according to its four-hour comparative spot scale (RSI) reading, which sits supra 70 — a merchantability signal.
GMT/USD four-hour terms chart. Source: TradingViewRelated: Move-to-earn: An progressive play-to-earn offshoot
Technically, GMT/USD is present investigating its erstwhile grounds precocious of $3.14 arsenic its interim support. A determination beneath the level raises the pair's imaginable of moving down towards its 50-day exponential moving mean (50-day EMA; the reddish wave) adjacent $2.52, astir 20% beneath today's price.
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