Yesterday, the creators of STEPN announced the release of the next update shortly. Against this background, the GST token has grown by almost 5% over the past day.
Yes, it may not seem like much, but for a token with an unlimited supply, which has used only in the game, such an increase is quite significant, especially in the current bear market conditions.
But for now, we’re not talking about an update or some small GST rate hikes. Now we will talk about when the rate of the STEPN gaming token will turn up and take a positive trend.
Why is GST crashing?
To guess if GST will rise, you first need to understand why it fell. The chart shows the price dynamics of GST/USD for the last 3 months.
According to NFT Politan: At its highest point (ATH), the price exceeded $8 at the end of April. After that, GST fell, then rose again, several times, and the price falls and rises were less and less bright.
But a stable, progressive decline began in the second half of May. Or the so-called downward spiral.
Several factors influenced this:
1. Departure of the Chinese audience
In mid-May, the creators asked Chinese users to leave the project due to government restrictions on cryptocurrency voluntarily. That’s when the fall of GST and the flora on sneakers at STEPN began. And perhaps, not so many people played STEPN in China, but they formed a significant layer of mint farmers. Such people bought sneakers in large quantities and crossed them among themselves, producing NFTs exponentially. After the announcement, the players were forced to put all their shoes up for sale, which greatly affected the price.
2. Bear market
It should be noted that everyone is having a hard time in the current market situation. If the project stays on the market, this is already a plus. And STEPN not only remains but also expands the horizons of its development.
However, many people are still afraid to enter any projects now and do not want to lose money. The drastic fall of bitcoin and the crypto market scared everyone. This fear may explain the chart showing the number of new users at STEPN.
The statistics are unofficial, but you can consider them since the data is collected from many game users. So, we see that the number of new players declined from the same point in mid-May when the GST token began to fall.
3. Falling GST price
Oddly enough, the drop in the GST price affected the drop in the GST price. This is how the downward spiral works. Users earn less – sell their sneakers – the number of sneakers on the market grows – demand for sneakers falls – the price falls – people are afraid that the project is dying – they sell sneakers. And this chain can be continued indefinitely.
When will GST rise?
So, we have analyzed all the introductions and can now move on to the main question. Unfortunately, most of us cannot make an accurate forecast for the future of the cryptocurrency market. However, it is quite possible to assume what is needed to increase the price.
What is GST? The in-game token of the STEPN project, which, in turn, is the most popular gaming project on the blockchain in 2022. In 2021, Axie Infinity, a game based on P2E mechanics, held this proud title.
Let’s see what happened to her in-game token – SLP. Below is the SLP/USD chart when the token reached the maximum price of $0.36 (05/01/2021).
The dynamics may well remind you of the situation with the GST token. It is important to note that all game tokens have an unlimited supply. Therefore, their price will inevitably fall with an increase in the number of players if the project does not use competent burning mechanisms.
So, in this regard, the GST token has more promising prospects than SLP because the STEPN developers are actively introducing various burning mechanics into the gameplay. One of the latest methods was mystery boxes, which now drop out to almost every user, and you will have to spend GST to open them.
GST should change course to positive if at least some of the factors from the list below work:
- more and more effective mechanics for burning GST will continue to appear in the game;
- the bear market will change into a bull market;
- users will use GST in the application more often and not display it (for this, it is necessary to maintain the interest of the players constantly);
- Increase the value of NFT sneakers. The developers have already hinted at this by announcing many collaborations with brands in the future. NFTs may have applications in the physical world, which will undoubtedly positively affect the exchange rate.
In any case, the creators of STEPN do a lot for the community, and so far, the game is in a leading position among M2E projects. Therefore, we are waiting for the end of the crypto winter and the improvement in the state of the GST token.
