STEPN users are stepping back from chasing the airdrop woes

  • User activity on STEPN has dropped significantly.
  • The price of GMT continues to fall as investors reduce accumulation.

As part of the New Horizon initiative, popular play-to-earn gaming platform STEPN airdropped its Genesis holders in February. As interest in the blockchain-based game wanes, key growth metrics continue to decline. This, despite the symbolic airdrop, according to data from DappRadar.

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Walking has replaced running on STEPN

A key indicator of an unhealthy protocol is a consistent decrease in user activity. This has been the case for STEPN since the end of the play-to-earn boom in December 2021. Data from Dune Analytics has even revealed a consistent decline in new demand for STEPN sneakers since January 2022.

aIn addition, the number of newcomers to the gaming ecosystem has decreased significantly since then.

Source: Dune analysis

The February token airdrop was conducted to boost existing users’ network activity, but it was unsuccessful. According to DappRadar, the number of unique active wallets on STEPN has dropped 33% in the past month.

In fact, STEPN ended February with a monthly active user count of 42,965 – the lowest since March 2022, data from Dune analysis revealed. Since the number of monthly active users of STEPN peaked at 705,452 in May 2022, it has dropped by almost 95%.

Source: Dune analysis

STEPN’s GMT has a tough road ahead

While the rest of the market has been trading sideways over the past month, STEPN’s GMT has trended south. In the past 30 days, the native token of the STEPN ecosystem lost 35% of its value on the charts.

Realistic or not, here is the market cap of GMT in BTC terms

As the token’s price moved south over the past month, it has since been followed by negative sentiment. This, especially as investors divide their GMT positions to hedge against further losses.

At the time of writing, GMT’s weighted sentiment was -0.344.

Source: Sentiment

On the daily chart, buying momentum appeared to have dropped significantly. The main momentum indicators are below their respective neutral lines, indicating a larger coin distribution.

This gave the sellers control of the GMT market, at the time of writing, as the negative turn signal (red) was firmly above the positive turn signal (green).

Source: GMT/USDT on TradingView

A suffering DEX?

STEPN launched its decentralized exchange (DEX) DOOAR in June 2022. The DEX allows users of the gaming platform to provide liquidity to its proprietary tokens – GST/USDC or GMT/USDC pairs.

The consistent decline in the value of these tokens over the past year has resulted in a sharp decline in the DEX’s dominance. When DOOAR first launched, its usage skyrocketed, giving it a 33% share of all daily active portfolios of all DEXs within the Solana network.

However, this percentage has since declined. At the time of writing, STEPN’s DOOAR held a 22% share of all daily active portfolios on the DEXs on Solana.

Source: Dune analysis

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