STEPN’s GST Lost 98% In 2 Months – Is Move-to-Earn Dead?

    Top-notch move-to-earn (M2E) application STEPN has over 3 million users, but its governance and reward tokens price is dropping freely.

    Is this the end of M2E or a turning back to averages after the overinflated prices created by hype and hysteria?

    What is STEPN? 

    STEPN is a mobile application that allows users to purchase NFT sneakers of different traits and rarity with SOL or BNB and then use them to earn crypto while walking or jogging. Rarity determines how much you can earn and how much you need to pay to maintain your NFT and prevent it from degrading.

    Your reward is Green Satoshi Token (GST), which can be used to repair or create new sneakers.

    Users can also transfer their GST to an in-app wallet and exchange it for other cryptocurrencies like USDC. STEPN’s revenue comes from swapping and buying NFTs.

    What makes STEPN decline? 

    STEPN seems to be struggling as both its governance and utility tokens are down up to 98% from their all-time high (ATH) of $4.19 for GMT and $9.36 for GST established in April. 

    GST price chart by Tradingview
    SMT price chart by Tradingview

    At the peak of STEPN, users could earn hundreds of dollars just from jogging or walking around using the M2E app. For $9.36, even with the most basic sneaker, users can fully earn a bonus of 3-4 GST per day (up to $37). Currently, with the same activities, users can only earn $0.72.

    With NFTs price of around $600 on Solana, the timeframe to get a positive ROI is around 16 days. As of June 24, the cheapest sneaker is around $104. With a return of only $0.72 per day, it would take investors 144 days to break even at current prices.

    M2E race

    STEPN is also facing competition from many new projects like Walken and Sweatcoin as the M2E bugs have severely affected the GameFi community.

    Walken’s WLKN token was released on June 21 and is now up 750% since its launch. It has the same mechanism as STEPN, using NFT to optimize earnings.

    Walken runs on the Solana blockchain. According to Solscan, it currently has 45,000 holders. Its fully diluted market cap is reported to be $277 million while STEPN’s is $4.9 billion. The circulating supply for Walken has not yet been confirmed; however, one wallet owns 92% of the supply.

    The distribution indicates that its circulating supply falls to around $22.1 million. With this supply, WLKN would have to grow 20x to reach $22, surpassing STEPN’s market cap.

    About SWEAT, its Sweatcoin token is set to release in 2022, with a slightly different gamification model from STEPN as the app tracks user’s steps in the background, which is similar to Apple Watch or FitBit. 

    Sweatcoin reportedly has over 90 million users and claims the launch of SWEAT “can be the largest crypto distribution in history.” There are already 28 billion SWEAT off-chain that can be used to purchase products, services, and discount codes. Furthermore, over 5 million non-escrow crypto wallets were generated by Sweatcoin in May alone.

    Besides the two prominent projects above, there are many other potential M2E projects that are active or coming soon such as CALO, Genopets, MoveZ, etc. It can be seen that although STEPN is falling, there are certainly opportunities for the M2E industry to set a foot in the GameFi field. Tokenomic issues and in-game economy are expected with a whole new concept. In fact, making $1 a day walking to work seems much more sustainable than over $30.

    (Reference: cryptoslate)

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