Why did the price of GT fall?

GateToken (GT) dropped 3.08% in the last 24 hours, underperforming the overall crypto market, which fell 1.94%. The main reasons include weak technical signals, concerns about token unlocks, and mixed reactions to recent developments in the GateToken ecosystem.

1. Technical Breakdown – Price fell below important support levels (30-day moving average at $15.57)
2. Token Unlock Pressure – A recent $110 million GT token unlock on September 26 is still affecting market sentiment
3. GMX DAO Uncertainty – Investors are unsure about the $110,000 per month GT purchase plan to support the Solana hub
4. Altcoin Weakness – Fear is rising in the market (Crypto Market Fear & Greed Index at 39), with money moving back into Bitcoin

Deep Dive

1. Technical Breakdown (Bearish Signals)

GT’s price dropped below its 30-day moving average ($16.13) and the 23.6% Fibonacci retracement level ($16.62), which triggered automated selling by trading algorithms. The Relative Strength Index (RSI) is at 34.25, indicating the token is oversold but hasn’t shown signs of a rebound yet. The MACD indicator also confirms downward momentum.

What this means: Traders who use technical analysis likely sold their GT holdings after the price failed to stay above $15.50. The next important support level is the 78.6% Fibonacci retracement at $14.43. If the price falls below this, selling pressure could increase.

2. Supply Pressure From Token Unlocks

On September 26, 6.67 million GT tokens (worth about $110 million at that time) were unlocked, increasing the circulating supply by 5.42%. Although this unlock didn’t directly cause yesterday’s price drop, analysts point to ongoing selling pressure from early investors and team members as their tokens become available.

What this means: Since July 2025, GT’s circulating supply has increased by 7.3%, which dilutes the value for current holders despite efforts to reduce supply through token burns. The market is also factoring in future unlocks of 37.5 million GT tokens, which represent 31% of the total supply.

3. GMX DAO’s GT Purchase Plan

The GMX DAO has announced a plan to buy $110,000 worth of GT tokens each month to support the Solana hub. However, traders are skeptical about this plan because:

• It’s unclear if the purchases will be made using market orders, which could be anticipated and front-run by other traders
• The monthly purchase amount is only 0.01% of GT’s $1.15 billion market cap, which may be too small to significantly impact the price

What to watch: The upcoming GMX governance vote should clarify how these purchases will be executed.

Conclusion

The recent drop in GT’s price reflects a combination of technical weaknesses, ongoing concerns about token supply increases, and doubts about the effectiveness of new demand initiatives. While GateToken’s ecosystem is growing with projects like the Layer 2 launch and the ADEN acquisition, short-term traders remain cautious due to broader market challenges and weakness in altcoins.

Key levels to watch: Can GT hold the $14.43 Fibonacci support? A break below this could lead to testing the yearly low at $13.58. Also, keep an eye on Bitcoin’s market dominance (currently 58.89%)—if Bitcoin’s dominance decreases, it could help altcoins like GT recover.

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What could affect the price of GT?

GateToken (GT) price is currently influenced by two main forces: its built-in supply reduction and challenging market conditions.

1. Growing Ecosystem – The launch of Gate Layer could boost demand for GT (positive)
2. Token Burns – Over 60% of GT tokens have been permanently removed, making the supply tighter (positive)
3. Market Mood – Fear is present in the crypto market, and altcoins are underperforming (negative)

In-Depth Look

1. Gate Layer Launch & Web3 Growth (Positive for GT)

Gate recently launched its new Layer 2 network called Gate Layer, built on the OP Stack technology, on September 25, 2025. This network uses GT exclusively to pay transaction fees (“gas”). It can handle over 5,700 transactions per second and supports projects like Perp DEX, which has over $1 billion in trading volume, and Gate Fun, a platform that lets users create tokens without coding. As of October 2025, more than $3 billion worth of GT tokens are staked on the network.

What this means: More activity on Gate Layer means more GT tokens are burned through a process called EIP-1559, reducing supply. Also, staking GT creates buying pressure. If Gate Layer captures just 10% of the total value locked (TVL) on the Base network (about $1 billion), it could require over $100 million in GT tokens to support liquidity (Gate Blog).

2. Token Burns Shrinking Supply (Positive for GT)

GT’s circulating supply has dropped significantly from 300 million to about 80 million tokens after burning 182.65 million tokens, worth nearly $3 billion, by the third quarter of 2025. Gate uses 20% of its exchange profits every quarter to buy back and burn GT tokens, with $35.3 million burned in the last quarter alone (NullTX).

What this means: If the current burn rate continues, GT could become scarcer than Binance Coin (BNB), which has burned about 39% of its supply compared to GT’s 60.88%. However, these burns depend on the exchange’s revenue, which has recently dropped by over 28% weekly according to CoinMarketCap data.

3. Market Sentiment & Competition (Mixed Signals)

The crypto Fear & Greed Index is at 39, indicating fear in the market. Altcoins like GT are underperforming Bitcoin, which currently holds a 59% market dominance. Open interest in crypto derivatives has fallen nearly 13% monthly, showing investors are cautious. GT competes with tokens like BNB, which gained 2.5% weekly, and OKB, which dropped 2.14%.

What this means: GT’s price moves closely with Bitcoin (correlation of 0.87 over 90 days), so a Bitcoin rally could help GT. But ongoing market fear might slow down adoption of Layer 2 solutions like Gate Layer. Institutional support is modest but present, with the GMX DAO buying about $110,000 worth of GT monthly (Cryptotimes).

Conclusion

GT’s price is driven by two main factors: its shrinking supply through token burns and growing use cases via Gate Layer. However, broader market challenges and shifting investor focus pose risks. The $14.43 support level held recently, but breaking above $15.57 (a key technical level) will likely require steady growth in Gate Layer adoption. A key question remains: will the expected $40 million+ in token burns during Q4 be enough to offset declining exchange revenues?

What are people saying about GT?

The GateToken (GT) community is balancing big Web3 goals with careful optimism. Here’s what’s trending:

1. Gate Layer launch – GT is now the gas token powering a new Layer 2 blockchain
2. $35 million Q3 token burn – a deflationary approach has now destroyed $2.95 billion worth of tokens
3. Ecosystem growth – new tools like Perp DEX, Gate Fun, and meme contests are increasing GT’s usefulness

In-Depth Look

1. @n0day0ff: Gate Layer’s EVM move is positive

“GT becoming the gas token… over 60% already burned. Staking GT now actually fuels the chain.”
– @n0day0ff (39.9K followers · 108K+ tweets · 2025-09-25 07:50 UTC)
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What this means: This is good news for GT. It’s moving beyond just being a token for trading and is now a key part of the blockchain’s infrastructure. Plus, staking GT could reduce the available supply, which might increase its value.

2. @Michigan409: Token burning discipline is positive

“Another $35.3M GT burn done… GT literally powering the whole ecosystem.”
– @Michigan409 (22K followers · 64K+ tweets · 2025-10-15 09:04 UTC)
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What this means: The recent burn destroyed 35.3 million GT tokens, bringing the total burned to 182.6 million GT—over 60% of the original 300 million supply. This reduces the number of tokens in circulation, which can help increase scarcity and value, especially as the ecosystem creates real demand for burning tokens.

3. @GateWeb3_HQ: Web3 ecosystem progress is mixed

Gate Layer now supports three main tools: Perp DEX (with over $1 billion in trading volume), Gate Fun (a meme-themed launchpad), and Meme Go tracker. GT is the only gas token used here.
– @GateWeb3_HQ (354K followers · 8.3K tweets · 2025-09-25 03:27 UTC)
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What this means: While these new tools increase GT’s real-world uses, the ecosystem’s success depends on ongoing developer support. Compared to more established Layer 2 blockchains, this is still a work in progress.

4. @laoziwuhai1: Bear-market incentives are neutral

“Gate’s points system lets users ‘farm while trading’ – 3,500 GT up for grabs.”
– @laoziwuhai1 (14.7K followers · 2.7K tweets · 2025-10-14 12:38 UTC)
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What this means: Gamified rewards like this can boost short-term interest, but it’s unclear if these users will stick around and become long-term GT holders.

Conclusion

The overall outlook on GateToken (GT) is cautiously optimistic. Its growing Web3 uses and steady token burns support its value, but there are risks as the ecosystem continues to develop. The Layer 2 shift and consistent quarterly burns averaging $35 million provide a strong foundation. Keep an eye on the Q4 2025 burn, which analysts expect could push total tokens burned past $3 billion—a key milestone that could boost investor confidence.

What is the latest news about GT?

GateToken (GT) is balancing growth with smart supply control. Here are the latest updates:

1. ADEN Acquisition Completed (October 29, 2025) – Gate Ventures bought a leading decentralized perpetual exchange (Perp DEX) to strengthen Web3 infrastructure.
2. GMX DAO’s $110K Monthly GT Purchase (October 29, 2025) – A plan focused on Solana shows steady demand for GT.
3. Q3 Growth Report Highlights (October 28, 2025) – Record trading volumes and ecosystem growth support GT’s usefulness.

In-Depth Look

1. ADEN Acquisition Completed (October 29, 2025)

What happened:
Gate Ventures, the investment branch of Gate, acquired ADEN, the third-largest decentralized perpetual exchange by trading volume (over $20 billion per month). ADEN will move to Gate Layer, Gate’s Ethereum-compatible Layer 2 blockchain, by November 3, 2025. This move combines ADEN’s liquidity and over 200,000 traders with Gate’s existing platform, which offers 447+ markets and up to 125x leverage.

Why it matters:
This is positive for GT because ADEN’s users could increase GT staking, which helps secure Gate Layer, and generate fee-based token burns that reduce supply. Also, cross-chain technology via LayerZero may bring users from Ethereum and Binance Smart Chain, increasing GT’s use as a transaction (gas) token. Still, combining centralized efficiency with decentralized transparency comes with challenges.
(Source: Yahoo Finance)

2. GMX DAO’s $110K Monthly GT Purchase (October 29, 2025)

What happened:
GMX DAO approved buying $110,000 worth of GT every month for a year to support its Solana network deployment, covering audits and developer expenses. Since March 2025, GMX Solana has generated $1.36 million in fees. However, GT’s price dropped 10% this month amid overall market uncertainty.

Why it matters:
This is neutral for GT. Regular purchases might slightly support the price (about 0.6% of GT’s daily trading volume), but there are concerns about possible price manipulation. The success depends on how well GMX Solana grows, especially with competition from other Solana-based decentralized finance (DeFi) projects.
(Source: Crypto Times)

3. Q3 Growth Report Highlights (October 28, 2025)

What happened:
Gate’s Q3 report showed a 98.9% year-over-year increase in derivatives trading volume, 41 million users, and over $12 billion in reserves. GT token burns removed 2.1 million tokens worth $35.3 million, totaling 182.6 million GT burned (about 61% of the total supply). The launch of Gate Layer (processing 5,700 transactions per second) and Gate Fun (a meme token creation toolkit) expanded GT’s real-world uses.

Why it matters:
This is positive for the long term. Token burns reduce selling pressure, and ecosystem growth ties GT to practical uses like staking and fees. However, GT’s price fell 18% compared to last quarter, reflecting weakness in the broader altcoin market. Metrics like derivatives market share (5.47% of spot trading) show GT’s value depends on ongoing platform activity.
(Source: Gate.io)

Conclusion

GateToken’s strategy of expanding its ecosystem (through ADEN and Gate Layer) while controlling token supply positions it as a valuable exchange token. However, challenges like market conditions and integration risks remain. With GT’s price near yearly lows, its growing Web3 connections could spark renewed interest and upward momentum.

What is expected in the development of GT?

GateToken’s roadmap is focused on growing its ecosystem, reducing the total supply through token burns, and integrating with Web3 technologies.

1. Gate Layer Ecosystem Tools (Q4 2025) – Expanding products like Perp DEX, Gate Fun, and Meme Go.
2. Q4 2025 Token Burn (Q4 2025) – Continuing quarterly burns to lower the supply of GT tokens.
3. GateChain Protocol Upgrades (2026) – Improving compatibility with Ethereum and boosting scalability.

Deep Dive

1. Gate Layer Ecosystem Tools (Q4 2025)

Overview: Gate Layer, launched in September 2025 as a fast and efficient Layer 2 blockchain, will add more tools in late 2025. These include Gate Perp DEX (a platform for trading perpetual futures without a middleman), Gate Fun (a platform that lets users create tokens without coding), and Meme Go (a platform for trading meme tokens across different blockchains). GT is the only token used to pay transaction fees (“gas”) on Gate Layer, and users can stake GT to help secure the network.

What this means: This is positive for GT because more use of these tools means more demand for GT tokens to pay fees. Plus, staking GT can reduce the number of tokens available for trading, potentially increasing value. However, Gate Layer faces competition from other Layer 2 networks like Base and opBNB, which could limit growth.

2. Q4 2025 Token Burn (Q4 2025)

Overview: Gate plans to burn (permanently remove) more GT tokens in Q4 2025. In the previous quarter, they burned 2.1 million GT tokens, worth about $35.3 million. Since 2019, over 60% of the original 300 million GT tokens have been burned. These burns are linked to the exchange’s revenue and on-chain activity (Gate Team).

What this means: Token burns help make GT more scarce, which can support its value. However, the impact on price depends on whether demand grows faster than the supply shrinks. Recently, GT’s price dropped about 15.8% over 90 days, showing weak short-term interest despite the long-term scarcity strategy.

3. GateChain Protocol Upgrades (2026)

Overview: The GateChain v1.20 upgrade in September 2025 added new features like EIP-4844 (which improves transaction data handling) and better compatibility with Ethereum’s virtual machine (EVM). Future upgrades in 2026 aim to make transactions cheaper, enable easier interaction between different blockchains, and support business uses like tokenizing real-world assets.

What this means: These technical improvements could attract more developers and projects to GateChain, which is good for GT. However, GT’s price tends to follow overall market trends, which have been down about 11% in the past 30 days. So, unless adoption picks up, price gains may be limited.

Conclusion

GateToken’s roadmap focuses on increasing its usefulness through new tools, reducing supply with token burns, and strengthening its technology. While these efforts could boost demand, challenges like market conditions and competition remain. The key question is: Will GT’s deflationary approach help it stand out despite a declining altcoin market? Keep an eye on Gate Layer’s total value locked (TVL) and the pace of token burns for signs of progress.

What updates are there in the GT code base?

GateToken (GT) is making big moves with new technology upgrades, including a faster Layer 2 network, improved compatibility with Ethereum, and regular token burns to reduce supply.

1. Gate Layer Launch (September 25, 2025) – A new high-speed Layer 2 network built on OP Stack, using GT as the gas token.
2. Mainnet v20 Upgrade (September 15, 2025) – Adds Ethereum compatibility and new features to improve scalability.
3. Q3 GT Burn (October 15, 2025) – 2.1 million GT tokens burned, helping reduce total supply and support token value.

Deep Dive

1. Gate Layer Launch (September 25, 2025)

What happened: Gate Layer, a Layer 2 network built on OP Stack technology, went live. It uses GT as the only gas token, meaning GT is required to pay transaction fees. This network can handle over 5,700 transactions per second with block times of just 1 second. Plus, transaction fees are about 95% cheaper than on Ethereum.
How it works: Gate Layer uses GateChain for security and LayerZero to connect with other blockchains. Developers can easily move their Ethereum-based apps (called DApps) to Gate Layer with little effort. GT holders can stake their tokens to help secure the network, which also rewards them.
Why it matters: This is good news for GT because it increases real-world uses for the token, like paying fees and earning rewards. It also positions Gate as a key player in the Web3 infrastructure space. (Source)

2. Mainnet v20 Upgrade (September 15, 2025)

What happened: GateChain upgraded to version 20, adding support for Cancun EVM and EIP-4844 (also known as Proto-Danksharding), which help lower transaction costs and improve data handling.
How it works: The upgrade includes 12 Ethereum Improvement Proposals (EIPs), such as EIP-3855 (PUSH0) to reduce costs and EIP-6780 to improve security by limiting certain contract behaviors. It also introduces “blob transactions” that help Layer 2 solutions scale better.
Why it matters: While this upgrade may not immediately affect GT’s price, it makes the platform more attractive to developers and sets the stage for future growth in decentralized finance (DeFi) and non-fungible token (NFT) projects. (Source)

3. Q3 GT Burn (October 15, 2025)

What happened: GateToken burned 2.1 million GT tokens, worth about $35.3 million, reducing the total supply. So far, 182.6 million GT tokens have been burned, which is about 60.88% of the original 300 million tokens.
How it works: Token burns happen every quarter through transparent on-chain transactions. This process is controlled by GateChain’s version of EIP-1559, which schedules regular supply reductions to help maintain token value.
Why it matters: This is positive for GT because reducing the supply while demand grows can increase the token’s value. The Q3 burn was 9.2% larger than the previous quarter, showing an accelerating effort to tighten supply as the ecosystem expands. (Source)

Conclusion

GateToken is focusing on three key areas: scaling with Layer 2 technology, improving compatibility with Ethereum, and reducing token supply through burns. With GT now powering a fast and efficient network, the big question is whether more developers will adopt the platform faster than the token supply shrinks.

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