- GMT price has risen by over 25,500% becoming the best-performing crypto.
- It has risen as investors price in more demand for its platform.
- A drop to $1 cannot be ruled out as it moves to its distribution zone.
Bitcoin and altcoins have been in a strong comeback in the past few days as investors buy at the dip. In this period, the GMT price has jumped to an all-time high as optimism about the STEPN ecosystem rise. The coin is trading at $1.83, which is 25,500% above the lowest level this month. As a result, it has moved from nowhere to become the 105th biggest coin in the world.
What is STEPN and why is it rising?
The fitness industry is a major one as evidenced by the vast number of people who attend the gym regularly. Data by Ibis shows that the health and fitness sector is valued at over $36 billion in the United States.
There are many services offered in the fitness sector such as gyms and at-home workout equipment like Peloton and Mirror. There are also dietary and advisory services.
STEPN is a web 3.0 platform that is seeking to change the industry by incentivizing people to do basic exercises like walking and running.
The company is solving the challenge of fitness by letting people buy its sneaker NFTs. After buying these NFTs, people are required to download and install an app and then activate its GPS features.
By doing this, people will start earning money in the form of the GMT token whenever they do activities like walking and running. Therefore, users will have an incentive to do these events. This is a notable thing since most people tend to give up easily whenever they start exercising.
The GMT token is also the medium of exchange for other transactional services in the network such as merchandise sales. It is also used for governance purposes.
The STEPN price has also risen because of a partnership with Binance. The company facilitated the platform’s token sale. STEPN also hinted about an upcoming announcement on a partnership with Binance.
GMT price prediction
The two-hour chart shows that GMT has gone parabolic for the reasons mentioned above. It has also risen because of the fear of missing out (FOMO) among investors. As a result, it has moved above all moving averages. At the same time, the Smart Money Index (SMI) and the MACD indicators have risen to the highest points ever.
Therefore, while the overall trend is bullish, I suspect that the coin will soon enter a distribution phase as initial investors start exiting their positions. If this happens, the next key level to watch will be at $1.
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