Accordingly, the third-quarter profit is estimated at $10.36 million, down 90% compared to the previous quarter, due to the left of a large number of users and the underperformance of the project.
The number of daily active users has significantly decreased over the past 90 days. However, the number of transactions on the network is still optimistic, which is the key element for STEPN to keep operating.
STEPN ecosystem is mainly based on NFT shoes, which users buy and use to increase NFT tokens and rewards. The number of shoes minted clearly reflects the drop in demand for STEPN NFTs. According to LunarCrush, STEPN’s mentions on social media have dropped 28% since September and interaction has also lost 18%.
Furthermore, the MVRV (market-value-to-realized-value), which measures the relationship between market capitalization and actual capitalization of GMT, is sitting at -5.326%. MVRV < 1 is a sign that the supply is almost breaking or suffering losses. Market capitalization is below the basic level, which means that the purchasing power is gradually weakening.
The current turbulent market has also significantly impacted GMT prices. At the time of this writing, GMT is trading around $0.65 with a low trading volume.
As can be seen, the above on-chain data is completely opposite to the good signal of the previous quarter. At that time, STEPN made $122.5 million in platform operating fees, a five-fold increase from Q1’s $26 million. After that, the project took out 5% of the amount to buyback and burn GMT. The remaining funds are deployed to improve the features and build the development team.