The Meteoric Rise of STEPN (GMT): Understanding the Move-to-Earn Phenomenon

A Market In Motion

Since making its debut in March, STEPN (GMT) has been making headlines with its impressive price jump. From a humble starting price of $0.01, GMT skyrocketed to a staggering $3.45 by April 19—an incredible 34,000% increase in just 41 days!

The Driving Forces

What’s behind this meteoric rise? The excitement around decentralized finance (DeFi) is a big part of the picture. Many users are flocking to projects that reward them for staying active. Similar tokens, like Genopets (GENE) and dotmoovs (MOOV), have also seen impressive gains, but none have compared to STEPN’s performance, securing its title as the most valuable move-to-earn project with a market cap nearing $2 billion.

Profits from Sneakers

A significant factor in GMT’s price surge is STEPN’s recent earnings report. The project reportedly made over $26.81 million in profit during the first quarter of 2022, primarily from “royalty fees” and the sale of its unique “NFT Sneakers.” So, how does this all work? Users purchase NFT Sneakers to engage in the app’s activities, earning in-game tokens known as Green Satoshi Tokens (GST). These tokens can be traded for real-world currencies like Solana (SOL) or USD Coin (USDC).

The Passive Income Opportunity

Let’s get into the fun side of this—earning money! Users have found innovative ways to generate passive income through STEPN. One eager participant shared their strategy: “I bought 20 pairs of shoes and I’m renting them out for free!” With a potential earning of $250 a day from 20 fellow runners, it’s no surprise that the community has embraced this scheme.

Is It Time to Cash In?

As exciting as the current wave of buying is for GMT, experts are sending out a cautionary note. According to the four-hour relative strength index (RSI), GMT is considered overbought with a reading above 70, which can often indicate a sell signal. Currently, GMT/USD is testing its previous record high of $3.14. A dip below this level might push the price towards its 50-day exponential moving average, potentially dropping to around $2.52, leading to a 20% decrease from the peak.

The Bottom Line

Investing in tokens like STEPN can be enticing, but it’s no walk in the park—pun intended. Remember, every investment carries risk. Conduct your own research to navigate this volatile market wisely.