GMT Sell-Off Underway? STEPN Unlocks 79.2 Million Tokens

STEPN has initiated a substantial unlock of its GMT tokens, amounting to 79.2 million, valued at approximately $30.24 million.

This move, executed on January 8, could mark a significant shift in the token’s market dynamics that may trigger a spike in volatility.

STEPN Unlocks 79.2 Million Tokens

STEPN transferred an overwhelming majority of GMT tokens – precisely 79.2 million – to four distinct addresses. These addresses played a crucial role in the subsequent distribution of the tokens, which occurred twice.

Indeed, further analysis reveals that out of the total unlocked tokens, a substantial 55.3 million GMT were distributed to 45 unique addresses within a remarkably short span of 50 minutes. The rapid movement of these tokens raises questions about the potential implications for the token’s market stability and investor strategy.

Read more: What Is STEPN (GMT)?

Notably, only a minor fraction, approximately 6.8%, of the unlocked tokens were deposited on Binance. This indicates a cautious approach by a majority of the recipients.

Moreover, 22 “strong-holding” GMT addresses received around 47.6% of the tokens. These addresses have consistently held GMT from at least three recent vestings, demonstrating a pattern of long-term investment strategy among certain holders.

The Potential GMT Price Reaction

The market participants gave a mixed reaction to this event. GMT’s token, starting with a step in its performance, seems to have gained momentum following the announcement of the latest STEPN contest.

This contest, which challenges STEPN users to capture photographs of their most scenic running locations, has seemingly bolstered investor confidence. Meanwhile, Adam Cochran of Cinneamhain Ventures attributed the rising price action to the success that Gas Hero, a socially-oriented web3 game, is having.

“In game auctions are clunky, most of the trading so far is going via the NFT marketplace owned by the same company and is also causing a bid into the price of GMT,” Cochran said.

From a technical perspective, GMT shows signs of a breakout on the weekly chart despite facing resistance around $0.527.

Read more: Top 10 Cryptocurrencies to Invest in January 2024

GMT Price Performance. Source: TradingView

Analysts speculate there might be room for a rally, potentially reaching the next resistance zone at $0.793. Such a surge could translate to a gain of 50% or more, offering a lucrative prospect for investors.