Would you use the STEPN fitness app to earn $0.72 per day? Competition is growing in the space, with Walken and Sweatcoin gaining ground on the move-to-earn leader.
STEPN is the market cap leader in the move-to-earn category and reportedly has over 3 million users. Their healthy lifestyle mobile app utilizes the Solana and Binance Smart Chain networks. Users purchase NFT sneakers with varying rarity and traits in either $SOL or $BNB and then use them to earn cryptocurrency while walking, jogging or running outdoors.
There are several different types and rarities of sneakers. These different types of sneakers allow users to earn crypto based on their exercise activities. The rarities decide the rate users can make and how much they need to pay back to maintain their NFT sneaker and stop it from degrading.
Rewards with Green Satoshi Tokens
The NFTs are bought in $SOL or $BNB, but the rewards come in the form of STEPN’s Green Satoshi Token ($GST.) $GST can be used to repair or breed users sneakers as part of the in-app gamification.
Users can also move their $GST into the in-app wallet and convert the tokens into other cryptocurrencies such as $USDC. STEPN’s revenue comes from taking a percentage of swaps and NFT purchases.
Why is STEPN’s price dropping?
The tokenomics of STEPN appear to be in trouble. Both the governance and utility token are down over 80% to 98% from their all-time highs set earlier this year. $GMT peaked at $4.19, whereas $GST reached $9.36 in April. However, both tokens have been trending down ever since and the situation looks serious.
ROI at $0.72 per day
At the peak of STEPN’s popularity, users could earn hundreds of dollars by simply jogging around their neighborhood while using the move-to-earn app. At a token price of $9.36 and even only owning the most basic sneaker, NFT daily rewards of 3-4 $GST were entirely possible. Currently, the same walk, which would have earned users up to $37 in April, only yields $0.72.
Earlier, with NFTs costing around $600 on Solana, the time frame to get a positive ROI was approximately 16 days. As of June 24th, the cheapest sneaker is about $104. At a return of just $0.72 per day, it would take investors 144 days to break even at the current price point.
Walken price up about 75% since June 21st launch
STEPN also has seen increased competition in the form of Walken and Sweatcoin, as the move-to-earn bug has hit the GameFi community hard. Other competitors in the space include Genopets, Dotmoovs and Step App. Walken’s $WLKN token was released on June 21 and is up approximately 75% since launch. The game has similar mechanics to STEPN as it uses NFTs to optimize earnings.
Walken runs on the Solana blockchain and, according to Solscan, currently has 45,000 users. Its fully diluted market cap is reported as $277 million compared to $4.9 billion for STEPN. The circulating supply for Walken has not yet been confirmed; however, one wallet owns 92% of the supply.
This distribution indicates that the circulating supply should be $22.1 million, assuming the whale wallet is the project treasury. At this supply, $WLKN would have to increase 20x to reach $22 to overtake the market cap of STEPN.
Sweatcoin token to launch this year, has over 90 million users
The Sweatcoin token, $SWEAT, is scheduled for release later in 2022, with users currently earning a non-crypto version of the token. Sweatcoin has a slightly different gamification model as the app tracks users’ steps in the background, similar to an Apple Watch or FitBit.
Sweatcoin reports over 90 million users and claims its token launch “can be the largest crypto distribution in history.” There are already 28 billion off-chain Sweatcoins that can be used in the app to buy products, services, and discount codes. In addition, over 5 million non-custodial crypto wallets were generated by Sweatcoin in May alone.
Earning $30 per day on STEPN is not sustainable
While STEPN may be on the decline, there is certainly still an opportunity for the move-to-earn industry to grow and find a place within GameFi. Earning while getting fit makes sense. Issues with tokenomics and in-game economy are expected with a brand new concept. In reality, earning $1 daily walking to work seems much more sustainable than $30+.
As an example, if the entire population of the United Kingdom used STEPN every day, earning $30 per day, it would create $2 billion worth of tokens per month. If 50% of the world’s population did the same, it would be $90 billion. These numbers simply do not scale; therefore, a cooling off period for its’ price may be beneficial to the longevity of STEPN and the move-to-earn category overall.