STEPN unlocks 79.2 million tokens
STEPN has begun to significantly unlock its GMT tokens, amounting to 79.2 million, worth approximately $30.24 million.
The move, made on January 8, could mark a significant shift in the token's market dynamics, easily triggering sharp increases in volatility.
STEPN unlocks 79.2 million tokens It was observed that STEPN transferred the majority of GMT tokens – 79.2 million to be exact – to 4 separate addresses. These addresses played an important role in the subsequent token distribution which happened twice.
Indeed, further analysis shows that of the total unlocked tokens, 55.3 million GMT were distributed to 45 unique addresses in a short period of just 50 minutes. The rapid movement of these tokens raises questions about the potential impact on market stability and investor strategies.
Notably, only a small fraction of about 6.8% of unlocked tokens are deposited on Binance. This shows the cautious approach of the majority of recipients.
Furthermore, 22 “strong holding” GMT addresses received approximately 47.6% of the tokens. These addresses have consistently held GMT since at least three recent *vestings, demonstrating the long-term strategic investment pattern of certain holders.
*Vesting: The process of holding, locking and issuing tokens, to create leverage to enter the market.
Potential GMT price reaction
Market participants had mixed reactions to the event. The GMT token started with an uptick in performance and appears to have gained momentum following STEPN's latest competition announcement.
This contest, which asked STEPN users to take photos of their best running locations, appears to have boosted investor confidence. Meanwhile, Adam Cochran of Cinneamhain Ventures attributed the rising price action to the success that socially-oriented Web3 game Gas Hero is having.
Cochran said:
“In-game auctions are complex, most transactions to date have occurred through an NFT marketplace owned by the same company and are also bidding at GMT prices.”
From a technical perspective, GMT shows signs of breaking out on the weekly chart despite facing resistance around $0.52.
Analysts speculate there could be room for a rally and reach the next resistance area at $0.79. Such a sudden increase in value will add 50% or more, creating lucrative prospects for investors.
