Should Investors Be Worried About STEPN?

STEPN (CRYPTO: GMT) was one of the big breakout hits for crypto this year. When STEPN started trading in March, it immediately popularized the concept of the move-to-earn game. But there is trouble on the horizon for STEPN. While the price of STEPN is still up 261% for the year, it is down nearly 87% from its all-time-high and 15% over the past 30 days.

Of primary concern is the emergence of more competition in the move-to-earn category, including the arrival of a growing number of STEPN look-alikes. There is speculation that the company behind STEPN is laying off staff and pivoting to a new strategy. In addition, monthly active users for STEPN have fallen off a cliff since July. So is it time to be worried about STEPN?

When STEPN launched in public beta on Solana back in December 2021, it was the only game in town. Sure, there were other fitness-based apps that encouraged people to work out to win in-game rewards, but STEPN was the only game that promised to pay you in valuable crypto tokens. When the crypto market was still strong in early 2022, these rewards were particularly desirable. So, when the STEPN token started trading in March, there was plenty of excitement and pent-up demand. On YouTube, crypto influencers began to post videos detailing how they were making anywhere from $50 to $200 per day simply by playing STEPN.

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Source Fool.com