In February, popular play-to-earn gaming platform STEPN held an airdrop for its Genesis holders as part of its New Horizon promotion. Key growth indicators, however, continue to fall as interest in the blockchain-based game dwindles. According to DappRadar statistics, this is despite the token airdrop.
A steady reduction in user activity is a major symptom of an unhealthy protocol. Since the conclusion of the play-to-earn boom in December 2021, this has been the situation for STEPN. In fact, Dune Analytics data shows a continuous fall in new demand for STEPN shoes since January 2022.
Nevertheless, the number of new participants into the gaming environment has decreased dramatically since then.
The token airdrop in February was intended to increase network activity among current users, however this did not occur. According to DappRadar, during the previous month, the number of unique active wallets on STEPN declined by 33%.
According to Dune Analytics, STEPN had 42,965 monthly active users at the end of February, the lowest since March 2022. The number of STEPN’s monthly active users has plummeted by over 95% since it peaked at 705,452 in May 2022. While the rest of the market has been trading flat for the past month, STEPN’s GMT has been trending south. In the previous 30 days, the STEPN ecosystem’s native token has lost 35% of its value on the charts.
The token’s price has been falling over the last month, and this has been accompanied with negative feelings. This is especially true if investors disperse their GMT holdings to protect themselves against future losses. GMT’s weighted sentiment was – 0.344 at press time.
The purchasing momentum appeared to have declined dramatically on the daily chart. Crucial momentum indicators are trading below their neutral levels, indicating increased coin dispersal.At press time, the negative directional signal (red) was well above the positive directional indicator, putting the sellers in control of the GMT market (green).
In June 2022, STEPN launched its decentralized exchange (DEX) DOOAR. The DEX enables gaming platform users to give liquidity to the site’s native tokens – GST/USDC or GMT/USDC pairings.
The steady drop in the value of these tokens over the last year has resulted in the DEX’s supremacy slipping dramatically. When DOOAR was originally released, its popularity surged, and it now accounts for 33% of all daily active wallets across all DEXs on the Solana network. This percentage, however, has since declined. At the time of publication, STEPN’s DOOAR accounted for 22% of all daily active wallets on Solana’s DEXs.
