Altcoins

This Solana-Based Crypto Token Is Up 200% This Week, Here’s Why

GMT, the governance token of the Solana-based play-to-earn undertaking STEPN,  tripled in worth this week on hypothesis over a partnership with a significant sports activities model. The undertaking additionally generated a big revenue within the first quarter of 2022, which it intends to make use of for burning tokens and increasing its ecosystem.

GMT surged 245% during the last seven days, going as excessive as a document stage of $3.07 on Friday, and rating among the many greatest performing tokens this week. Its market capital additionally broke above $1.5 billion.

STEPN presents itself as a life-style Web3 software, and rewards customers in tokens for working or strolling. Customers of the app must first mint NFT sneakers utilizing Solana (SOL), which they then must equip within the app whereas working, to generate rewards. GMT is likely one of the rewards paid out by the app. The opposite is GST, which can be utilized to mint new NFTs.

Curiosity in Solana-based initiatives has additionally spiked this week, as SOL rallied to develop into the sixth-largest crypto by market capitalization.

Main STEPN sports activities partnership coming quickly?

Earlier this week, the undertaking hinted at a doable partnership with a significant sports activities model throughout an interview with Solana enterprise capital fund Photo voltaic Eco Fund.

When requested whether or not massive manufacturers akin to Nike and Adidas posed a risk to STEPN, the undertaking mentioned that it could make an announcement “quickly” on the matter.

The undertaking additionally posted an image on its official twitter deal with that features logos from a number of well-known sportswear manufacturers, together with Nike, Adidas, and Asics.

Large Q1 revenue, GMT burning prospects

The undertaking announced a Q1 revenue of 198,635 SOL ($26.8 million) from NFT market buying and selling and royalty charges. A bulk of this revenue can be used to purchase again and GMT from the secondary market, lowering its provide and certain boosting its worth.

The undertaking didn’t present specifics as to what number of tokens it could burn.

In line with STEPN’s whitepaper, there are a complete of 6 billion GMT tokens minted. 30% of those have been distributed for governance participation on the app. The undertaking additionally plans to halve the entire variety of GMT tokens each three years.



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