GMT, the governance token of Solana-based play-to-earn project STEPN, tripled in value this week following speculation of a partnership with a major sports brand. The project also generated a large profit in the first quarter of 2022, which it plans to use for burning tokens and expanding its ecosystem.

GMT is up 245% in the last seven days, reaching a record high of $3.07 on Friday and is among the best performing tokens this week. Market capital also broke above $1.5 billion.

STEPN presents itself as a lifestyle Web3 application and rewards users in running or walking tokens. Users of the app must first create NFT sneakers with Solana (SOL), which they must then equip in the app while running to generate rewards. GMT is one of the rewards paid out by the app. The other is GST, which allows the creation of new NFTs.

Interest in Solana-based projects has also surged this week as SOL rallied to become the sixth largest cryptocurrency by market cap.

Big STEPN sports partnership coming soon?

Earlier this week, the project hinted at a possible partnership with a major sports brand during an interview with Solana venture capital fund Solar Eco Fund.

When asked whether big brands like Nike and Adidas posed a threat to STEPN, the project said it would make an announcement “soon”.

The project also placed a image on the official Twitter handle with logos of several well-known sportswear brands, including Nike, Adidas and Asics.

Huge Q1 Gains, GMT Burning Outlook

The project announced a Q1 profit of 198,635 SOL ($26.8 million) from NFT marketplace trading and royalties. Much of this profit will be used to buy back GMT from the secondary market, reducing supply and likely raising the price.

The project did not provide any details on how many tokens it would burn.

According to STEPN’s white paper, a total of 6 billion GMT tokens have been minted. 30% of this was distributed for board participation on the app. The project also plans to halve the total number of GMT tokens every three years.

Disclaimer

The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

About the author

With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can watch him play video games or watch Seinfeld reruns. You can reach him at [email protected]coingape.com





This post This Solana-based crypto token is up 200% this week, here’s why

was published first on https://coingape.com/solana-based-stepn-rallies-this-week-heres-why/

Author

Write A Comment