By Franklin Smith
STEPN (GMT) recorded around $10.36 million in Q3 profits, reflecting a 90% decline from its 2nd quarter earnings. The profits decline might have emerged from STEPN’s reducing activity and users.
Nevertheless, Q3’s drastic performance decline has market players pondering whether STEPN can fluctuate with fourth-quarter festivities.
STEPN’s Fall from Fame
The primary concern for the GameFi app remains the declining daily active user count. STEPN has recorded a steady fall in daily users since June end. Dune Analytics firm confirmed this slump.
The downturn emerged early in Q3, welcoming continuous plummets. That could have contributed to GMT’s Q3 faded performance.
Though STEPN saw its daily users decline, the network recorded surged transaction count within the previous 90 days. Dune Analytics confirmed that the transaction per user count recorded growth within the past quarter (despite some volatility).
Also, STEPN’s network recorded some steady actions, despite the dwindling daily users and token price. Users that depended on STEPN and extended their daily transactions could have driven STEPN’s growth.
It’s Never All Roses and Sunshine
Nevertheless, the blockchain had massive concerns, regardless of the optimistic updates on the user front. The STEPN network relies on its NFT shoes, which users buy to earn NFT prizes and tokens.
The drop in minted shoes might reflect a dropped demand for STEPN’s non-fungibles (NFT). A chart from Dune Analytics confirmed the case.
Besides the discussed information, the platform’s social media engagements and mentions have slumped since September.
A social media analytics platform LunarCrush revealed that STEPN’s social media mentions had fallen by 28% since last month. Moreover, social engagements deteriorated by 18%.
Also, GMT’s weighted sentiment added to the declines. The asset’s weighted sentiment recorded a dip within the previous few days.
Moreover, GMT’s MVRV (Market Value-Realized Value) ratio plummeted within the past two weeks, indicating a downbeat future for the alternative token.
While publishing this blog, GTM traded at $0.6429, declining by 0.37% over the past day. Its volume declined by a staggering 84%, whereas the token’s market cap lost 0.31% since October 8.
Market players interested in shorting GMY might assess STEPN’s tokenomics as they can affect trades.
Editorial credit: photo_gonzo / shutterstock.com