STEPN, the popular move-to-earn dApp, had just one active user today. Have users lost interest in getting paid to workout? Or is there a different story?
According to data from DappRadar, a tool that provides insight into decentralized applications, STEPN had just one active user. However, DappRadar defines an active user as a number of unique wallet addresses interacting with a particular Dapp’s smart contracts. It may not include the users who might just be exploring around without making a transaction in the smart contract.
What is STEPN?
Move-to-Earn was the talk of the town in around April 2022, and STEPN, powered by Solana, was the flagbearer. STEPN aims to incentivize users to live a healthy lifestyle. Users needed to buy a “sneaker” NFT to earn crypto. Different types of sneakers have different rewarding attributes based on the user’s physical activity.
Gradually, things started to go downhill for STEPN. The cost to mint a new sneaker is around $4 now, according to Dune. The third quarter profits for STEPN are down 90% from the second quarter. Recently STEPN started to lay off staff.
What caused the downfall of STEPN?
The earnings for STEPN users decreased, resulting in users fleeing. Even those who had STEPN in their daily routine are moving on. Users also find the tokenomics responsible for the decline. It is structured in a way that they will have to sell their tokens in the market to claim their rewards. When they sell their tokens, the supply increases resulting in a decline in the token’s price.
The STEPN team is bringing on some changes to add value to GMT. The STEPN community believes that the project has the potential to change the world and hopes for a revival. What are your thoughts about STEPN?
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.