The GMT price has dropped tremendously over the past few weeks as demand for the coin has evaporated. Stepn’s native token has seen its price drop by more than 76% from its highs in May, bringing its total market cap to approximately $621 million. At its peak, it was valued at over $1 billion.
Why has GMT crashed?
Move-to-earn is a relatively new industry that is transforming the NFT, gaming and exercise industries around the world. Its concept was popularized by SweatCoin, a platform that has over 30 million users from all over the world.
The concept behind Stepn is relatively easy to understand. First, developers have created mobile applications that anyone can install on their smartphone. Developers will use the phone’s GPS tool to verify if someone has walked or run.
Second, the developers have come up with an innovative way for people to buy sneakers in the form of NFTs. Therefore, people are able to earn virtual currency which they can convert into cash in a matter of minutes.
learn more about how to invest in crypto,
Stepn’s ecosystem has been in strong growth over the past few months. It has more than 560k users from all over the world. This platform earns money by taking commission when people put NFT tokens in its ecosystem. Also, there is a deduction for NFT trading.
Stepn owns two cryptocurrencies. The Green Metaverse Token (GMT) is the governance coin while the Green Satoshi Token (GST) is the utility token. GMT has an unlimited supply whereas GST has a supply limit of 6 billion tokens.
The GMT price dropped drastically in May, when developers decided to disable GPS from China, the most populous country globally. He blamed restrictive regulations for the situation. This explains why the coin has struggled to recover ever since.
GMT Price Prediction
The four-hour chart shows that GMT price has been in a strong bearish trend over the past few weeks. This has created a descending channel which is shown in black. Moreover, it is consolidating with the 25-day and 50-day moving averages while the MACD indicator is trading below the neutral level.
Hence the coin will continue to fall as the bears target the next major support level at $0.73, which is the lower side of the descending channel. On the other hand, a move above the upper part of the channel at $1.3725 would indicate that the buyers have won.