The move-to-earn industry was recently seen as one of the best applications of the blockchain industry. The industry combined the giant fitness industry with the emerging blockchain technology. Now, it seems like move-to-earn is having a slow death as the number of users drop and the tokens struggle. StepN’s GMT price has underperformed popular cryptocurrencies.
Fundamental flow in move-to-earn
It is easy to see why many people had high hopes in the move-to-earn industry. For one, the fitness industry is a major one. With the world’s population at over 8 billion people and with most of them having smartphones, the move-to-earn had a large total addressable market.
It is also a simple industry to take part in since all you need to do is to download an application and sign up. All steps you make are recorded in the application and then you are eligible for rewards. As such, it is possible for one to make money by installing apps like StepN and Sweatcoin.
However, the industry has a fundamental flow in that these rewards are in the form of cryptocurrencies.
StepN monthly active users have dropped
In Sweatcoin, users are rewarded in SWEAT while in StepN, they are rewarded using GMT and GST. These tokens tend to be highly volatile. As such, when things are going n well, they will have more users. When the situation change, the number of active users will often drop.
GMT and GST prices have dropped by more than 90% from their all-time highs. As a result, the number of monthly active users has been in a downward trend. As shown below, the number jumped from 2,533 in January 2022 and peaked at over 705k in May of the same year.
Since then, the number of active users has been in a downward trend. In March, the platform had just 4,349, meaning that its trend is not encouraging. The same is true for Sweatcoin as the number of users has eased.
A look at Similarweb shows that the ranking of the app in the app store has continued to fall. The SWEAT Economy price has fallen by more than 93% from its highest point in 2022.
Therefore, it is hard to recommend investing in GMT, GST, and SWEAT tokens as the industry goes through a rough patch. This is not to say that these tokens are going to zero. As we have seen before, cryptocurrencies tend to move in sync with each other.
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