STEPN [GMT] 34,000% increase in 41 days could hint at...

You are probably aware of Non-Fungible Tokens(NFTs). As you scroll through your Twitter feed, you must have come across a barrage of cartoon avatar NFTs. However, with increasing growth and adoption of the technology, new entrants into the space believe that over the next few years, NFTs gaming will serve as a potential driver for more growth in the market.

In that context, with its run-to-earn gaming model, STEPN’s Governance Token (GMT) recorded a 45% spike in price this week. But how has this token performed so far?

It’s a runner, it’s a track star…

Touted as the first “move2earn” mobile NFT game, STEPN is powered by Solana and it provides a platform wherein players with their NFT Sneakers can walk, jog, or run outdoors and earn tokens in the process.

Since launching in December 2021, STEPN has grown at a tremendous pace, from just 1,500 daily active users in January 2022 to touching 100,000 in March 2022.

With a market capitalization of $1,901,404,879, STEPN in a blog post on 1 April 2022 announced that its business generated a profit of 198,635.62 SOL ($26,815,807.35) through the sales of its sneakers on its NFT marketplace and royalty fees in Q1 2022.

Further to this, at the time of this writing, the trading volume for STEPN’s $GMT stood at $1,371,155,006. This represented a 132% spike from the trading volume of $591.97m recorded on 9 March when the company launched.

Source: Santiment

Despite these impressive runs, a look at the total NFT Trades Count for $GMT raised some concerns. On 9 March, a total of 57,571 Trades Count was recorded. However, as of this press time, the total NFT Trades Count for the token stood at 17,461. This represents a 70% decline in the value of the total NFT Trades Count for the coin so far.

In addition to this, total NFTs Trade Volume also dropped significantly. A trade volume of 52.74m was recorded on 9 March, at the time of this press, it stood at 33.17m.

Technically…

Notably, over the last seven days, the coin has recorded a 45% spike in price, shedding only 3.12% in the last 24 hours. The price for the coin rose monstrously from $0.01 on 9 March to a high of $3.45 by 19 April. This is a 34,000% increase in just about 41 days.

Source: CoinMarketCap

Since the beginning of April, the RSI for the coin constantly remained in the overbought region indicating high bullish activity. Interestingly, since 1 April, the coin had not recorded a fall below the 50 neutral level. However, at the time of this press, the RSI stood at 67.52 inching closer to the overbought region.

Source: TradingView

Runners beware…

Many believe that NFT games are unsustainable as players are only motivated to continue playing only to cash out their winnings. Similarly, the current hype enjoyed by STEPN also surrounded Axie Infinity’s business in 2021 before the price of the token dropped towards the end of 2021.