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Saturday, December 3, 2022
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    HomeAltcoinThis Solana-Based Crypto Token Is Up 200% This Week, Here's Why

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

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    GMT, the governance token of the Solana-based play-to-earn venture STEPN,  tripled in worth this week on hypothesis over a partnership with a significant sports activities model. The venture 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 way of life 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 without doubt 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 turn into the sixth-largest crypto by market capitalization.

    Main STEPN sports activities partnership coming quickly?

    Earlier this week, the venture hinted at a attainable 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 equivalent to Nike and Adidas posed a risk to STEPN, the venture stated that it could make an announcement “quickly” on the matter.

    The venture 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.

    Big Q1 revenue, GMT burning prospects

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

    Based on 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 venture additionally plans to halve the overall variety of GMT tokens each three years.

    Disclaimer

    The introduced content material might embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty to your private monetary loss.

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