STEPN has caught the attention of the crypto market over the past few months. The app is a new step in earning platform that rewards users for running and walking. So far, the project has hit a market cap of around $600 million. This is why STEPN is on the rise:
The platform has largely defined the M2E space.
STEPN is integrating NFTs and social gaming into its metaverse.
The in-game economy is user-centric which gives people more incentive to join.
Data Source: TradingView
How does Stepan work?
STEPN pays you to move. However, it is not as straightforward as it seems. First, to join the app, you’ll need to purchase an NFT-powered sneaker. There are different types of sneakers, each with its own level of rarity, quality, and other characteristics.
On average, a sneaker can cost you around $1000 based on current SOL prices. Also, users get limited energy every day. So, you can’t just sign up and run for survival. There will be a time limit for how much running or walking you can do. Etherway, STEPN offers a great way to earn while doing something healthy.
Tokenomics and Sustainability
The biggest challenge for most web3 earning projects is stability. As we have seen from platforms like Axi Infinity, it is very difficult for a P2E web3 platform to generate enough value to sustain the revenue stream.
The STEPN model falls into the same trap. You see, the money that is earned from walking or running comes from the purchase of newly made sneakers. So, if the number of new users joining drops at some point, the whole system collapses.
While STEPN is a good investment right now, it is not something you want to hold for the long term. Unless there is a major change in utility and value, it is a short-term game. You can buy into STEPN via its native governance token GMT.