The Dapps (decentralized application) StepN crypto made a lot of noise at the beginning of the year 2022. With a phenomenal launch, it seduced many sports enthusiasts combining both physical activity and blockchain technologies in a concept so far. relatively new and unexplored. However, despite undeniable success, Dapps has since experienced several difficulties, as evidenced by its GMT token. What causes this problem? Can we envisage a strong comeback next year?
StepN crypto: a launch at +3500% in 2022
StepN is one of the Dapps that has had the greatest impact on 2022. Its innovative concept has won over an audience that has been somewhat neglected by blockchain technologies until now.
It mixes GameFi and SocialFi. It acts as a game system to earn cryptos without investing first and without looking at the markets, as games in Play to Earn mode can do.
Its simple and lucrative operation has been able to reach sports users who have not previously been initiated and who are not very interested in crypto-currencies. It is based on a known system, sports applications, but has diverted the process to introduce a monetizable dimension thanks to the blockchain.
Simply put, users earn tokens simply by running. Via an improved localization system, the application is able to calculate running speed, duration and distance and thus remunerate its users. Obviously, the more a runner uses the app, the more he is paid. Also, the faster and longer he runs, the more the remuneration increases.
Sneakers in the form of NFT are also available for purchase in order to provide boosters and multiply the winnings. These NFTs are scalable and can therefore increase in value over time. Users thus have the possibility of realizing capital gains on the acquired NFTs.
The GMT, the native token of StepN is a central element of the StepN mechanism. It is used as a means of governance with 6 billion tokens in maximum supply.
The GST, on the other hand, is the reward currency sent to users after their efforts.
Finally, the SOL is also an important token since it governs the operation of the application and represents the main currency of the Dapps NFT market.
Based on Solana, StepN crypto was officially launched and listed on March 9, 2022. The initial price of GMT was set at $0.1243. Faced with the enthusiasm for the project and a growing number of users, its value has completely exploded.
A month after its launch on the markets, the token was trading around $2. It finally reached its ATH on April 28, 2022 at $4.31. This represents an increase of almost 3500% in just a few weeks.
The number of users has also skyrocketed. Within a month, nearly 100,000 people were regularly using the app. Yields have actually gone down. Running sessions don’t pay as much as they used to and StepN has lost interest.
Why did GMT crypto drop sharply?
Momentum halted by the bear market
The timing did not work in favor of StepN crypto, however. Indeed, while the momentum allowed the GMT token to gradually gain in value, the fall of the Terra ecosystem put an end to it.
In 6 weeks, the token lost 87% of its value on the ATH to return to levels below $1. Violent bearish moves hit altcoins harder than hard cryptocurrencies like Bitcoin or Ethereum. StepN was therefore no exception to the rule.
It’s important to note, however, that StepN doesn’t fare so badly. Compared to crypto-currencies that have suffered much larger losses of more than 95%, StepN has resisted. It is a fact to underline because despite her very short experience, she did not completely collapse. A good number of projects have completely disappeared.
However, against this backdrop of crypto winter, StepN suffered from massive user drain. From 100,000 in April, there were only a few thousand today.
Solana and repeated breakdowns: responsible?
Another fact that contributed to the decline of StepN: the successive failures of the Solana blockchain.
As mentioned above, StepN crypto is hosted on the Solana blockchain. This is also why NFTs are tradable in SOL only to date.
The choice of this network was not made at random. Indeed, Solana is one of the sure values. The blockchain is often perceived as a serious competitor to Ethereum.
For good reason, its execution speed is much higher. With a TPS (transactions per second) of 2615 currently, Solana far surpasses Ethereum which currently fluctuates between 10 and 15 TPS. The increased scalability of Solana could even increase this figure and reach 50,000 transactions/second.
In addition, network costs are extremely low. It takes less than $1 in fees to execute 1000 transactions.
In view of its qualities, the Solana network is often described as the “Visa of crypto-currencies”, in particular by the Bank of America, so much its influence is positive. For a Dapps such as StepN crypto, this type of network seems to be an ideal solution.
However, Solana has definitely disappointed especially in recent months. Network congestion problems and the resulting outages have jeopardized the back-to-back projects.
Users are getting involved and a feeling of anger has been brewing for some time. Successive malfunctions have prompted the developers to make numerous updates to limit the damage. However, these are still present. And, in a bear market context, they don’t help matters.
StepN crypto therefore suffers the consequences, although moderate. But it is true that even though the performance of Solana is undeniable, the fact remains that it can harm the sports decentralized application and its users.
Will StepN crypto be able to get back to the highs in 2023?
StepN tries to get secure
For StepN, it is now a question of taking up the challenge and regaining an upward momentum.
At first, StepN crypto tried to stem the bleeding. Through a “Buy back & Burn” system, the teams took control of the supply in circulation. They bought back a quantity of tokens thanks to the profits of $122.5 million generated by the purchase and sale costs made on the application.
Although these profits were intended for the development and improvement of the ecosystem, StepN used part of this amount to buy $6 million from GMT which she then burned. Scarifying the supply, StepN was able to limit the losses. However, the project is far from being saved.
From a marketing point of view, StepN crypto also relies on a significant mobilization of its community and new users.
Like sports applications such as Adidas Running, the platform does not hesitate to offer challenges. Recently, she launched the “12,000 steps in 1 day challenge”. By completing the challenge, users have a chance to win 1000 tokens as a result of a lucky draw.
All of these actions attempt to maintain users’ interest and arouse the attention of others.
What future for the Web3 sports project?
These actions have the merit of showing StepN crypto’s ambition to last over time despite an unfavorable context. Especially since this abbreviated success pattern is quite familiar to Play to Earn games as a rule.
Axie Infinity had a similar run with a loss of attendance and a hack on the Ronin blockchain that contributed to a steep drop.
However, can we expect a return to grace of the StepN project in 2023?
From the team’s point of view, as we have seen, the ambition is clearly to survive and regain its appeal with users.
However, GameFi players remain largely neglected in times of crisis like the one we are experiencing with cryptos. Investors and other blockchain users largely favor big assets like Bitcoin and Ethereum before looking, as a last resort, at altcoins from the Play to Earn universe.
At a time when the behemoths are suffering and trying to stay afloat, projects like StepN, although ambitious and serious, are far from regaining their share of the pie in the short and medium terms.
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StepN crypto: a possible comeback in 2023?
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