STEPN’s 10.7% surge may excite investors, but the excitement may be temporary

ambcrypto.com:

STEPN [GMT], a Web3 lifestyle application with social and game elements, recently registered a massive decrease in its user base. In the month of February, STEPN’s user base surged considerably, as it grew more than 100 times in the next few months.

However, a recent report from Messari suggested that things have changed quite a bit as STEPN’s daily active users dropped by 80%. Not only DAUs, but new users have also decreased from 20% to 5% of STEPN’s total user base. 

New users have decreased from 20% to 5% of STEPN’s total user base. pic.twitter.com/hVQN8GHDrA

— Messari (@MessariCrypto) September 10, 2022

Despite this change, GMT did not seem to hold back as it registered more than 14.5% 24 hour gains. This is higher than several cryptos with a larger market capitalization. At press time, GMT was trading at $0.7681 with a market cap of $460,851,414

A look into GMT’s metrics gave positive hopes as most of them backed the price surge and indicated a further rise. For instance, GMT’s 30-day Market Value Realized Value (MVRV) Ratio gained upward momentum after declining for quite some time, which is a bullish signal.

Interestingly, the uptick was also backed by high volume, providing additional support to the massive surge.

Source: Santiment

While GMT’s price was increasing, its social dominance also spiked as the community showed more interest in the token. However, though GMT’s 365-day MVRV Ratio also increased, it was way below the 30-day MVRV Ratio, which might cause hindrance to GMT’s upward movement in the coming days. 

Source: Santiment

GMT’s four-hour chart told a different story, as several market indicators suggested a possible