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Why did the price of GT fall?

GateToken (GT) dropped 0.75% in the last 24 hours to $15.44, underperforming the overall crypto market, which gained 1.66%. Here’s why:

  1. Weak technical signals – GT’s price is below important moving averages and a key pivot point at $15.56, indicating low buying momentum.
  2. Selling after token burn – A $35 million GT token burn on October 15 didn’t lead to a price increase, suggesting traders sold after the news.
  3. Market caution – The Crypto Fear & Greed Index is at 36, showing fear in the market and less interest in altcoins like GT.

In-Depth Analysis

1. Technical Weakness (Negative Impact)

GT is trading below its 7-day and 30-day simple moving averages (SMAs), which are $15.79 and $16.22 respectively. The MACD indicator also points to bearish momentum. The pivot point at $15.56 now acts as resistance, meaning it’s harder for the price to rise above this level.

Traders often see prices below these averages as a sign to be cautious or sell. The Relative Strength Index (RSI) is at 41.8, which means GT isn’t oversold yet, so there could be more room for the price to fall. If GT closes below $15.10, a key Fibonacci retracement level, it might drop further toward $14.43.

2. Selling After Token Burn (Mixed Impact)

GateToken burned 2.1 million GT tokens worth $35 million on October 15 (Gate Team announcement). Token burns reduce the total supply, which can support prices over time. However, the price actually fell 3.6% in the week after the burn.

This suggests that many traders sold their tokens after the burn news, taking profits instead of holding for long-term gains. This “sell the news” behavior is common when investors expect a price jump that doesn’t materialize immediately.

3. Altcoin Market Sentiment (Negative Impact)

The Altcoin Season Index is at 26 out of 100, signaling that Bitcoin is currently stronger than altcoins. Bitcoin’s market dominance has risen to 59.06%, meaning more investors are moving their money into Bitcoin and away from altcoins like GT.

GT’s daily loss of 0.75% contrasts with Bitcoin’s relative stability. This shows traders prefer safer, more liquid assets during uncertain times. Additionally, open interest in derivatives related to mid-cap tokens like GT has dropped 24% year-over-year, indicating less speculative trading activity.

Conclusion

GT’s recent price drop is due to weak technical signals, profit-taking after the token burn, and a cautious market environment for altcoins. Despite this, GateToken’s aggressive burn policy (destroying 61% of its supply) and growth in its Layer 2 ecosystem (Gate Layer) provide some long-term support.

What to watch: Will GT hold the $15.10 support level amid Bitcoin’s growing dominance, or will fear cause more selling?


What could affect the price of GT?

The price of GateToken (GT) depends on the growth of its ecosystem, the reduction of its supply through token burns, and changes in cryptocurrency regulations.

  1. Ecosystem Growth – Adoption of Gate Layer, a new Layer 2 network, could increase GT’s usefulness (positive for price).
  2. Token Burns – 60% of GT’s supply has been permanently removed, with $35 million burned in Q3 2025 (positive for price).
  3. Regulatory Risks – Uncertainty around U.S. crypto laws could create challenges (negative for price).

In-Depth Analysis

1. Ecosystem Growth through Gate Layer (Positive Impact)

Overview:
Gate has launched Gate Layer, a Layer 2 blockchain network that uses GT as its transaction fee token (gas). This means the more people use the network, the more GT is needed. Gate Layer claims to handle over 5,700 transactions per second, with block times of just 1 second, and transaction fees that are 90% cheaper than competitors like Base. Popular products on Gate Layer include Gate Perp DEX, which has processed over $1 billion in trading volume, and Gate Fun, a platform for creating meme tokens. These products aim to increase the demand for GT.

What this means:
If more users and developers adopt Gate Layer, it will increase the number of transactions, which in turn raises the amount of GT burned through transaction fees and boosts staking demand. This could lead to price gains similar to what Binance Coin (BNB) experienced during its 2021 growth. However, Gate Layer faces competition from other Layer 2 networks like Coinbase’s Base and Binance’s opBNB, which could limit its adoption.

2. Token Burns and Supply Reduction (Positive Impact)

Overview:
Since 2019, 60% of GT’s total supply has been permanently removed from circulation through token burns, totaling 182 million tokens worth about $2.95 billion. In the third quarter of 2025 alone, $35 million worth of GT was burned. The token uses a dual burn system that includes quarterly burns and transaction fee burns, which could reduce the circulating supply to around 160 million tokens.

What this means:
Reducing the supply of GT makes each remaining token more scarce, which can increase its value if demand stays the same or grows. Despite a recent 14.6% price drop over 90 days, the aggressive supply reduction suggests GT might be undervalued. Historically, periods of high token burns have been followed by price rallies, like the 79% gain seen in 2025 so far.

3. Regulatory Uncertainty (Negative Impact)

Overview:
The U.S. Senate is considering a crypto bill that could restrict tokenized stocks by classifying them as commodities, which might slow down innovation in the space. While Gate holds a Malta MiCA license to comply with European Union regulations, changes in U.S. policy remain unpredictable.

What this means:
Stricter U.S. regulations could negatively affect overall market sentiment and impact GT’s price, even though GT is designed to be exchange-neutral. On the other hand, positive regulatory developments, like the stablecoin bill passed in July 2025, could improve confidence in the crypto sector.

Conclusion

GateToken’s price is influenced by a balance between its deflationary token burns and ecosystem growth, against the backdrop of uncertain regulatory developments. Current technical indicators (RSI at 41 and price below the 200-day moving average) suggest short-term weakness, but wider adoption of Gate Layer could change this trend. The key question is: Will the token burns in Q4 exceed $35 million, indicating faster ecosystem growth?

{{technical_analysis_coin_candle_chart}}


What are people saying about GT?

GateToken’s community is buzzing with excitement, combining a shrinking supply strategy with big plans for Web3 technology. Here’s what’s making waves:

  1. The launch of Gate Layer 2 is drawing comparisons to the popular Binance Smart Chain (BNB)
  2. A massive $35 million quarterly burn of GT tokens is increasing scarcity
  3. Fun activities like meme contests and staking rewards are boosting community involvement

Deep Dive

1. @n0day0ff: Positive outlook on Gate Layer’s Web3 shift

“GT is becoming the main token for transaction fees… over 60% of tokens burned. Staking supports the network.”
– @n0day0ff (12.3K followers · 89K impressions · Sept 25, 2025, 07:50 UTC)
View original post
What this means: This is good news for GT. Gate’s new Layer 2 blockchain can handle over 5,700 transactions per second with 1-second block times, making GT essential for network operations. Staking GT helps secure the network and also speeds up token burning, reducing supply.

2. @Michigan409: Continued focus on reducing supply

“Another $35.3 million worth of GT tokens burned… showing real use for the token.”
– @Michigan409 (8.4K followers · 27K impressions · Oct 15, 2025, 09:04 UTC)
View original post
What this means: While burning so many tokens can cause short-term price swings, it’s a positive sign long-term. Over 60% of all GT tokens have now been permanently removed from circulation. According to NullTX, the total burned value has passed $2.95 billion.

3. @MetaWhaleOwner: Meme contests boost GT interest

“Trade to share 6,000 GT rewards.”
– @MetaWhaleOwner (43K followers · 112K impressions · Oct 10, 2025, 08:02 UTC)
View original post
What this means: This is somewhat positive. Gate Fun’s meme contests create short-term spikes in demand for GT, but this depends on active participation from everyday traders, who often deal with volatile assets.

Conclusion

Overall, the outlook for GateToken is cautiously optimistic. The aggressive token burning (over 60% of supply gone) supports a scarcity-driven value, but broader market uncertainties remain. Technical analysis suggests support around $15.80 (Gate analysis). Keep an eye on upcoming Q4 burn numbers, expected to push total burns beyond $3 billion, and how quickly developers adopt Gate Layer. The key question is whether the ecosystem’s products can turn these token burns into lasting demand.

{{technical_analysis_coin_candle_chart}}


What is the latest news about GT?

GateToken (GT) is growing its ecosystem while carefully reducing the total supply to increase value. Here are the latest updates:

  1. Q3 2025 On-Chain Burn (October 15, 2025) – $35 million worth of GT tokens were permanently removed, bringing total burns to nearly $3 billion.
  2. Gate Layer L2 Launch (October 23, 2025) – A new fast blockchain network boosts GT’s role as the token used to pay transaction fees.
  3. Gate Fun Community Launch (October 14, 2025) – A new platform for meme tokens encourages community engagement powered by GT.

In-Depth Look

1. Q3 2025 On-Chain Burn (October 15, 2025)

What happened:
GateToken carried out its regular quarterly burn, destroying 2.1 million GT tokens valued at about $35.3 million. This brings the total amount of GT tokens burned to 182.6 million, which is nearly 61% of the original supply. This ongoing burn process helps make GT more scarce, which can increase its value. The burns are linked to the exchange’s revenue and are publicly verified on the blockchain.

Why it matters:
Reducing the number of GT tokens available supports the idea that GT is a scarce asset, which is important since the total supply is capped at 300 million tokens. However, the overall effect depends on factors like how much revenue the exchange generates and the general market environment. For example, in Q3, derivatives trading volume on the exchange jumped almost 99% month-over-month to $746 billion. (Gate)

2. Gate Layer L2 Launch (October 23, 2025)

What happened:
Gate introduced a new Layer 2 blockchain built on the OP Stack technology. This network can handle over 5,700 transactions per second with block times of just 1 second. GT is the only token used to pay transaction fees (“gas”) on this network, and staking GT helps secure it. The Layer 2 supports Gate’s perpetual futures decentralized exchange (DEX), which has processed over $1 billion in volume since launch, along with other Web3 applications.

Why it matters:
This development connects GT directly to the growth of blockchain infrastructure, which could increase demand for the token if more users and developers adopt the network. However, there are risks from competing Layer 2 solutions like Base and zkSync, and the success depends on whether enough developers build on the platform to justify its high transaction capacity. (Gate Q3 Report)

3. Gate Fun Community Launch (October 14, 2025)

What happened:
Gate Fun is a new platform that lets users create meme tokens without needing to code, combined with social community features. Users earn GT rewards for participating, and creators receive between 16.7% and 60% of transaction fees through community pools.

Why it matters:
This platform could boost the use of GT by increasing transaction activity. Its success will depend on attracting quality projects and active communities. Early results are promising, with 6,000 GT distributed as launch rewards. (Gate)

Conclusion

GateToken’s strategy combines steady token burns, increased utility through its Layer 2 network, and community-driven meme token projects. This makes GT a unique exchange token with both scarcity and practical use cases. The key question is whether growing developer activity on Gate Layer can balance the risks tied to speculative meme tokens. Keep an eye on GT’s burn rate and the total value locked (TVL) on its Layer 2 network for signs of future momentum.

{{technical_analysis_coin_candle_chart}}


What is expected in the development of GT?

GateToken’s roadmap is focused on growing its ecosystem and reducing the total supply of GT tokens to increase value:

  1. Gate Layer Integration (Q4 2025) – Launch of a fast, efficient Layer 2 network using GT as the gas fee token.
  2. GT Ecosystem Expansion (2025–2026) – Regular token burns and new Web3 products to boost GT use.
  3. GateChain v2.0 Upgrade (Q1 2026) – Improvements to make GateChain more compatible with Ethereum and scalable.

Deep Dive

1. Gate Layer Integration (Q4 2025)

Overview:
Gate Layer is a new Layer 2 network built on OP Stack technology. It launched in September 2025 with the ability to process over 5,700 transactions per second, with block times of just 1 second, and security comparable to Ethereum through GateChain. GT is the only token used to pay gas fees, and more than 60% of GT’s total supply had already been burned by the third quarter of 2025.

What this means:

2. GT Ecosystem Expansion (2025–2026)

Overview:
Gate’s “All in Web3” plan focuses on making GT a deflationary token by regularly burning tokens (both scheduled burns and automatic burns through EIP-1559). It also supports three main products:

What this means:

3. GateChain v2.0 Upgrade (Q1 2026)

Overview:
After the v1.20 upgrade in September 2025, which added features like EIP-4844 blobs and Cancun EVM compatibility, GateChain plans further improvements to make it easier for different blockchains to work together and to provide better tools for developers.

What this means:

Conclusion

GateToken’s roadmap combines technical upgrades with strategies to encourage ecosystem growth and token scarcity. The key to success will be how well users adopt the Layer 2 network and the meme token platforms. Will GT’s deflationary model keep working if activity on Layer 2 slows down? Keep an eye on quarterly token burns and the total value locked (TVL) on Gate Layer for signs.


What updates are there in the GT code base?

GateToken’s technology recently received major updates to improve its ability to grow, increase security, and work better with Ethereum, one of the biggest blockchain platforms.

  1. EVM & EIP-4844 Integration (September 15, 2025) – Upgraded to Ethereum’s Cancun EVM, adding “blob” transactions that make Layer 2 data storage cheaper.
  2. GateChain v19/v20 Consensus Upgrade (September 15, 2025) – Enhanced gas efficiency, security, and improved developer tools.
  3. Gate Layer Launch (September 25, 2025) – Released a fast Layer 2 solution using GT as the gas token, secured by GateChain.

Deep Dive

1. EVM & EIP-4844 Integration (September 15, 2025)

Overview: GateChain’s main network upgraded to Ethereum’s Cancun EVM, which supports 12 new Ethereum Improvement Proposals (EIPs). One key feature is Proto-Danksharding (EIP-4844), which lowers the cost of storing data on Layer 2 networks like Gate Layer, making transactions more affordable and scalable.

Key technical updates:

What this means: This upgrade is positive for GateToken (GT) because it makes GateChain a more cost-effective base layer for developers building scalable applications compatible with Ethereum tools. Lower transaction costs could encourage more users and projects to join the Gate ecosystem.
(Source)

2. GateChain v19/v20 Consensus Upgrade (September 15, 2025)

Overview: A 5-hour update improved how GateChain handles transactions, focusing on reducing fees, boosting security, and enhancing developer experience.

Key changes:

What this means: In the short term, this upgrade was neutral for GT since node operators paused transactions during the update. However, over time, easier contract deployment and lower fees could attract more projects to build on GateChain.
(Source)

3. Gate Layer Launch (September 25, 2025)

Overview: Gate introduced Gate Layer, a Layer 2 solution built on the OP Stack, capable of handling over 5,700 transactions per second with 1-second block times. It is secured by GateChain.

Codebase impact:

What this means: This is a strong positive for GT because burning about 60% of its supply (as of September 2025) reduces token availability, increasing scarcity. At the same time, growing Layer 2 adoption boosts GT’s usefulness for governance and staking within the ecosystem.
(Source)

Conclusion

GateToken’s recent upgrades show a clear focus on aligning with Ethereum’s technology to improve scalability and developer friendliness. The Cancun EVM integration and Gate Layer launch position GT as both a deflationary token and a key part of Gate’s Web3 ecosystem. The big question is whether increased decentralized app (DApp) activity on Gate Layer will keep driving GT’s scarcity through token burns.