Messari recently released a report on STEPN that assessed its performance before and after Solana network issues. The company’s report showed how market changes can disrupt and potentially destabilize dApps.
Solana accounted for approximately 20% of fees in the second quarter of 2021, according to the report. During this time, STEPN capitalized on Solana’s steady growth.
At the moment, the move-to-earn app is struggling to attract new users, and its revenue has dropped significantly.
In the early stages of launch, many crypto projects take advantage of the hype around the crypto market. They often adopt their platform mechanics to user growth and use the incoming revenue to pay users as part of their tokenomics strategy. However, this approach often fails to take into account the other side of the coin.
The market is subject to wild fluctuations: when prices fall, interest disappears. That is exactly what happened this spring. Other issues followed, such as the Solana network disruption. These events hurt STEPN’s user growth and profitability.
The tokenomics model caused the GMT token to inflate excessively. This result made the ecosystem less attractive, meaning STEPN almost lost its ability to attract new users. What’s more, it scared away most of the existing users.
The experts felt that STEPN’s current strategy was a failure and that the app would have to use a different tokenomics and financial model to succeed in the future.
The STEPN team has already outlined plans for the future of the project. The platform seeks to create value for its users using new sources of income. Among the initiatives are the introduction of new income streams, and the launch of the DOOAR decentralized exchange.