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 challenge STEPN,  tripled in worth this week on hypothesis over a partnership with a significant sports activities model. The challenge 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% over the past seven days, going as excessive as a document degree 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 have to first mint NFT sneakers utilizing Solana (SOL), which they then have to equip within the app whereas working, to generate rewards. GMT is among 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 turn into the sixth-largest crypto by market capitalization.

Main STEPN sports activities partnership coming quickly?

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

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When requested whether or not huge manufacturers corresponding to Nike and Adidas posed a risk to STEPN, the challenge stated that it could make an announcement “quickly” on the matter.

The challenge 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.

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Large Q1 revenue, GMT burning prospects

The challenge 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 will probably be used to purchase again and GMT from the secondary market, decreasing its provide and certain boosting its value.

The challenge 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 had been distributed for governance participation on the app. The challenge additionally plans to halve the overall variety of GMT tokens each three years.



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