Why did the price of GT fall?

GateToken (GT) dropped 0.7% in the last 24 hours, following a broader 3.8% decline over the past week. Here’s why:

1. Upcoming token unlock – $110 million worth of GT will become available on September 26, raising concerns about increased supply.
2. Selling after airdrops – Recent GT-based airdrop events just ended, leading some holders to sell and take profits.
3. Technical weakness – The price fell below important moving averages, indicating downward momentum.

In-Depth Analysis

1. Token Unlock Concerns (Negative Impact)

What’s happening:
On September 26, about $110.97 million worth of GT tokens will be unlocked (Crypto Calendar). This is roughly 0.67% of GT’s total market value. When tokens unlock, early investors or team members can sell their coins, which often leads to increased selling pressure.

Why it matters:
In the past, GT token unlocks have been linked to short-term price drops because more tokens become available to trade. Although this unlock is relatively small, it comes at a time when overall market sentiment is neutral to cautious (CMC Fear & Greed Index at 40), which could increase the risk of price declines.

What to watch:
Keep an eye on wallet activity after the unlock and any large transfers to exchanges, as these may signal upcoming selling.

2. Selling After Airdrops (Negative Impact)

What’s happening:
Gate.io recently held several airdrops that required users to hold GT to receive free tokens (examples include RUNWAGO and DRESSdio). These airdrops ended between September 18 and 20.

Why it matters:
After receiving free tokens, many participants sell their GT holdings to secure profits, especially if GT’s price is weak. The current 24-hour trading volume of $20.1 million fits the pattern of typical selling after such events, though it’s not unusually high.

3. Technical Analysis (Negative Impact)

What’s happening:
GT’s price has fallen below its 7-day and 30-day simple moving averages (SMAs), which are around $16.89 and $16.96, respectively. The Relative Strength Index (RSI) is at 40.5, indicating mild bearishness. The MACD indicator also points to downward momentum.

Why it matters:
Traders view $16.55 as a key support level. If the price stays below this, it could drop further toward the September low of $16.29. Additionally, trading volume has decreased by 18% in the last 24 hours, suggesting less buying interest to push prices back up.

Summary

GT’s recent price drop is driven by a combination of event-related concerns (token unlocks and airdrop-related selling) and technical signals pointing to weakness, all happening amid cautious market sentiment. While the upcoming token unlock might not cause a big impact on its own, traders are being careful ahead of the event.

What to watch next:
Will GT hold the $16.29 support level before the unlock on Friday? Also, watch for changes in exchange reserves and Bitcoin’s price movements, as broader crypto trends could influence GT’s price more than its own events.

What could affect the price of GT?

GateToken’s price is caught between two forces: the growth of its ecosystem and the effects of token supply changes.

1. Token Unlocks (Bearish Impact) – On September 26, about $110 million worth of GT tokens will become available, which could put downward pressure on the price.
2. Ecosystem Utility (Bullish Impact) – Features like airdrops, staking, and platform expansion increase demand for GT.
3. Deflationary Burns (Bullish Impact) – Regular token burns reduce the total supply, making GT more scarce and potentially more valuable.

Deep Dive

1. Upcoming Token Unlocks (Bearish Impact)

What’s happening:
On September 26, 2025, 0.67% of GateToken’s circulating supply—valued at roughly $110 million—will be unlocked. Past unlock events, such as one in August 2025 that released 5.42% of GT’s market cap, have been followed by price drops (about 8.24% lower over 30 days). These unlocks often lead to selling as early investors and team members cash out.

What this means for you:
This increased selling could push GT’s price below its current key level of $16.55. Traders might also sell ahead of the unlock, adding to price swings.

2. Ecosystem Growth & Airdrops (Bullish Impact)

What’s happening:
Gate.io’s HODLer Airdrop program requires holding GT to qualify for new token giveaways like RUNWAGO and Unibase. In August 2025, these airdrops locked up about 30 million GT tokens (worth over $400 million) and caused a 141% jump in spot trading volume. The platform’s user base grew to 37 million, and derivatives trading volume nearly doubled to $746 billion.

What this means for you:
Because GT acts like a “golden ticket” to these airdrops, more people want to hold it, which increases buying demand. The platform’s growth also supports GT’s long-term value.

3. Deflationary Token Burns (Bullish Impact)

What’s happening:
In the second quarter of 2025, Gate.io burned 1.92 million GT tokens (worth $39 million). Since 2019, they have burned 60% of the original GT supply. These burns are funded by 20% of Gate.io’s quarterly profits, creating a steady reduction in supply.

What this means for you:
With fewer tokens available and growing demand from airdrops and staking, these burns help balance out selling pressure from unlocks. The total value of burned tokens is $2.75 billion, highlighting GT’s strong deflationary advantage compared to other tokens.

Conclusion

GT’s price will depend on whether demand from ecosystem growth can outweigh selling pressure from token unlocks. Expect some short-term price swings around September 26, but GT’s deflationary token burns and its important role in Gate.io’s expanding platform suggest potential for long-term gains. The key question is how the market will react to the next quarterly burn versus the $110 million token unlock.

What are people saying about GT?

GateToken (GT) holders are benefiting from free token giveaways called airdrops while keeping an eye on a big $110 million token unlock coming up. Here’s what’s trending:

1. Airdrop frenzy – GT holders get access to free tokens
2. Deflation in action – Over $72 million worth of GT tokens will be burned in 2025
3. AI trading hype – GT Protocol’s AI-driven strategies are delivering 57% monthly gains
4. Supply shock risk – A $110 million token unlock is approaching

Deep Dive

1. @meow5688: GT as Airdrop King 👑 bullish

"Holding 1 GT = automatic entry to 125K AVNT airdrop"
– @meow5688 (2.1K followers · 18K impressions · 2025-09-08 08:43 UTC)
View original post
What this means: If you hold GT tokens, you qualify for free token giveaways, encouraging more people to buy and hold GT. Recent airdrops like WXTM (3.8 million tokens) and OBOL (125,000 tokens) also reward GT holders, boosting demand.

2. @GT_Protocol: AI Trading Gains 🤖 bullish

"July’s top strategy delivered +57.55% USDT growth"
– @GT_Protocol (387K followers · 2.1M impressions · 2025-08-06 12:38 UTC)
View original post
What this means: GT Protocol’s AI-powered trading strategies are performing very well, which could attract more users to the platform. Their Syrup Pool integration with PancakeSwap adds more ways to use GT tokens.

3. @hinkok_: $110M Unlock Alert 🚨 bearish

"Sep 26: $GT 0.67% ($110.97M) unlock"
– @hinkok (91K followers · 524K impressions · 2025-09-20 21:09 UTC)
[View original post](https://x.com/hinkok/status/1969509270145417564)
What this means: On September 26, about 0.67% of the circulating GT supply, worth roughly $110 million, will become available for trading. Historically, similar unlocks have caused GT’s price to drop by over 8% in the following month, indicating the market is sensitive to sudden increases in supply.

4. AMBCrypto: Burn Mechanics 🔥 bullish

"2025 burns removed 59.54% of GT’s initial supply"
– AMBCrypto (Verified News · 2025-05-14 00:00 UTC)
View article
What this means: GT has a deflationary model where tokens are regularly “burned” (permanently removed from circulation). In 2025 alone, over $72 million worth of GT tokens were burned ($33.84M in Q1 and $39.01M in Q2). Since 2019, 180 million GT tokens have been burned, reducing the circulating supply to about 82.37 million from a maximum of 300 million.

Conclusion

The overall outlook on GateToken (GT) is cautiously optimistic. The token benefits from strong use cases like airdrops and token burns that create demand, but the upcoming $110 million unlock on September 26 could put pressure on the price. Keep an eye on market indicators like the Fear & Greed Index (currently Neutral at 40) and GT’s turnover rate (1.59%) after the unlock. A higher turnover rate could help absorb selling pressure and stabilize the price.

What is the latest news about GT?

GateToken (GT) is growing its ecosystem but also faces risks from increasing token supply. Here’s the latest update:

1. GateChain v20 Upgrade (September 15, 2025) – Added Ethereum-compatible features to improve smart contract capabilities.
2. August Growth Report (September 12, 2025) – Derivatives trading volume nearly doubled, and GT holders received $400 million in airdrops.
3. Upcoming Token Unlock (September 26, 2025) – About 0.67% of GT’s total supply, worth $110.97 million, will be released into circulation.

Deep Dive

1. GateChain v20 Upgrade (September 15, 2025)

Overview
GateChain upgraded to version 20, making it compatible with Ethereum’s technology. This includes new features like EIP-4844, which helps improve transaction speed and scalability, and EIP-3855, which reduces transaction costs. This upgrade helps GateToken work better with Ethereum-based applications and developers.

What this means
This is positive news for GT because it could attract more decentralized apps (dApps) and increase liquidity across different blockchains. However, the real benefit depends on how many developers choose to build on GateChain instead of other popular networks like Ethereum or Solana. (Gate.io)

2. August Growth Report (September 12, 2025)

Overview
In August, Gate.io saw a huge jump in derivatives trading volume, reaching $746 billion—a 99% increase from the previous month. The platform’s reserves also grew to over $12 billion. GT holders received more than $400 million in airdrops through programs like the HODLer Airdrop (#298).

What this means
This is a mixed signal for GT. While the exchange’s growth supports demand for GT, the large amount of tokens given away as airdrops could lead to selling pressure. In August alone, 30 million GT tokens were distributed, which is about 36% of the tokens currently available for trading. (Gate.io)

3. Upcoming Token Unlock (September 26, 2025)

Overview
On September 26, 119.05 million GT tokens, worth approximately $110.97 million, will be unlocked. This represents about 5.42% of GateToken’s total market value and comes from tokens reserved for the team and advisors.

What this means
This is likely to put downward pressure on GT’s price in the short term. Past unlock events of similar size have led to price drops between 7% and 12%. However, if Gate.io’s revenue continues to grow and more GT tokens are burned (removed from circulation), this could help balance out the selling pressure. (Crypto Calendar)

Conclusion

GateToken benefits from the growth of the Gate.io exchange but faces challenges from upcoming token unlocks. The key question is whether Gate.io’s strong reserve ratio (123%) and growing user base (over 37 million registered users) can offset the impact of releasing $110 million worth of new tokens in September. Keep an eye on GT’s token burn rate and derivatives trading volume after the unlock for signs of where the price might head next.

What is expected in the development of GT?

GateToken’s roadmap highlights important updates and token events scheduled for late 2025:

1. Mainnet Consensus Upgrade (September 15, 2025) – Improved compatibility with Ethereum and better scalability.
2. GT Token Unlock (September 26, 2025) – $110.97 million worth of GT tokens will be released into circulation.
3. Deflationary Burns (Ongoing) – In Q2 2025, $39 million worth of GT tokens were burned, reducing supply and increasing scarcity.

Deep Dive

1. Mainnet Consensus Upgrade (September 15, 2025)

Overview:
GateChain’s recent upgrades (versions 19 & 20) brought improvements that make it more compatible with Ethereum’s network. This includes new features from Ethereum’s Cancun upgrade (like EIP-4844, which helps with faster and cheaper transactions) and added security measures. These changes help GateChain work better with Ethereum-based applications, potentially attracting more developers and users.

What this means:
This is a positive development for GateToken because better compatibility can lead to more network activity and higher demand for staking GT tokens. However, during the upgrade, there might be some technical issues like temporary service interruptions, which could affect user confidence for a short time.

2. GT Token Unlock (September 26, 2025)

Overview:
On this date, 0.67% of the total GT tokens in circulation—valued at about $110.97 million—will become available. Historically, when large amounts of tokens unlock, it can cause price fluctuations, especially if trading volume is low (currently, GT’s daily trading volume is around $27.8 million).

What this means:
There could be downward pressure on the price if many unlocked tokens are sold quickly. However, GateToken’s deflationary model, which has already burned 60% of its supply since 2019, may help balance this out over time. It’s important to watch how many tokens move onto exchanges after the unlock.

3. Deflationary Burns (Ongoing)

Overview:
In the second quarter of 2025, Gate burned 1.92 million GT tokens worth $39 million. This ongoing burn policy has cut the total supply by over 60% since GateToken launched. These burns are funded by revenue from the Gate.io platform, linking the token’s scarcity directly to the platform’s growth.

What this means:
This is generally positive for GT’s value because reducing supply tends to support price stability. Additionally, it encourages holders to keep their tokens, especially since staking GT offers an annual return of 3–6% through GateChain’s Proof-of-Stake system.

Conclusion

GateToken’s upcoming plans combine important technical upgrades with careful management of token supply. The token unlock in September presents a short-term challenge, but the ongoing token burns and expanding ecosystem—such as Gate Alpha’s AI-powered trading tools—strengthen GT’s long-term value. It will be interesting to see how GateToken’s role grows within Gate.io’s Web3 products alongside Ethereum’s evolving network.

What updates are there in the GT code base?

GateChain is gearing up for major upgrades to improve Ethereum compatibility and scalability.

1. EVM & EIP Upgrades (September 15, 2025) – Full integration of the Cancun Ethereum Virtual Machine (EVM) with better compatibility and lower transaction costs.
2. Blob Transactions Support (September 15, 2025) – Introduction of proto-danksharding technology to support faster and cheaper Layer 2 solutions.

Deep Dive

1. EVM & EIP Upgrades (September 15, 2025)

Overview:
GateChain’s version 20 update will align its Ethereum Virtual Machine with Ethereum’s latest Cancun upgrade. This means GateChain will work more smoothly with Ethereum apps and reduce transaction fees.

Key improvements include:

• Lower transaction costs: Thanks to updates like EIP-2565 and EIP-3855, users will pay less gas (transaction fees).
• Better security: EIP-6780 limits certain contract behaviors to prevent potential attacks.
• More predictable fees: EIP-2929 adjusts gas costs to make repeated data access more consistent.

Why it matters:
This upgrade is positive for GateToken (GT) holders because it makes it easier for developers to bring Ethereum decentralized apps (dApps) to GateChain. Lower fees could also attract more decentralized finance (DeFi) projects. (Source)

2. Blob Transactions Support (September 15, 2025)

Overview:
GateChain will add support for “blob” transactions through EIP-4844. These blobs are temporary data packets that help Layer 2 solutions process transactions more efficiently and cheaply.

Technical highlights:

• Supports proto-danksharding, a step toward full sharding, which improves blockchain scalability.
• Introduces a separate fee system for blob transactions, keeping costs clear and manageable.
• Sets the stage for advanced Layer 2 technologies like ZK-Rollups and optimistic rollups.

Why it matters:
This upgrade is neutral to positive for GT. It prepares GateChain for future growth in Layer 2 applications, but actual benefits depend on developers building on the platform. Node operators must update their software by September 15 to keep the network running smoothly. (Source)

Conclusion

GateChain’s v20 upgrade positions it as a blockchain closely aligned with Ethereum, equipped with modern tools for scaling. By focusing on Ethereum compatibility and new data-handling methods, GateChain aims to attract Layer 2 projects. The key question is whether developers will choose GateChain over more established networks. Keep an eye on transaction fees and cross-chain activity after the upgrade to see how well it performs.