The GMT price has been in a spectacular downfall in the past few weeks as demand for the coin has evaporated. Stepn’s native token has seen its price fall by more than 76% from its highest level in May, bringing its total market cap to about $621 million. At its peak, it was valued at more than $1 billion.
Why did GMT crash?
Move-to-earn is a relatively new industry that is changing the NFT, gaming and exercise industries worldwide. Its concept was made popular by SweatCoin, a platform that has over 30 million users worldwide.
The concept behind Stepn is relatively easy to understand. First, the developers have created mobile applications that anyone can install in their smartphones. The developers will use the phone’s GPS tool to validate that a person has walked or run.
Second, the developers have come up with an innovative way to trick people into buying sneakers in the form of NFTs. Therefore, people can earn virtual currency which they can convert to cash within minutes.
Stepn’s ecosystem has been in strong growth in the past few months. It has over 560k users from around the world. The platform makes money by taking a commission when people mint NFT tokens in its ecosystem. Also, it takes a cut when NFT trading happens.
Stepn has two cryptocurrencies. Green Metaverse Token (GMT) is the governance coin while Green Satoshi Token (GST) is the utility token. GMT has an unlimited supply while GST has a supply cap of 6 billion tokens.
The GMT price crashed hard in May after the developers decided to deactivate the GPS from China, the most populous country globally. They blamed restrictive regulations for the situation. This explains why the coin has struggled to recover since then.
GMT Price Prediction
The four-hour chart shows that the GMT price has been following a strong downtrend over the past few weeks. It formed a descending channel which is shown in black. Furthermore, it is consolidating along the 25 and 50 day moving averages while the MACD indicator is below the neutral level.
The coin will therefore continue falling as bears target the next key support level at $0.73, which is the lower side of the descending channel. On the other hand, a move above the upper side of the channel at $1.3725 will signal that buyers have prevailed.
