Why did the price of GT fall?

GateToken (GT) dropped 1.03% over the past 24 hours to $11.95, underperforming the overall crypto market, which fell 1.63%. The main reasons include weak technical indicators, a lukewarm response to recent transparency efforts, and a general cautious mood across the crypto space.

1. Technical Weakness – GT’s price is below important moving averages, and momentum indicators suggest it’s oversold.
2. Market Sentiment – The crypto Fear & Greed Index shows “Fear” at 25, and interest in altcoins is down significantly.
3. Fundamental Developments Lagging – Recent proof-of-reserves and expansion into Australia haven’t yet boosted investor confidence.

Deep Dive

1. Technical Weakness (Bearish Signals)

Overview: GT is trading below its 7-day average price ($12.22) and 30-day average price ($14.76), indicating ongoing selling pressure. The Relative Strength Index (RSI) is at 28.55, which means the token is oversold but hasn’t bounced back yet.

What this means: If GT stays below $12.00, it could continue to fall toward the next support level around $10.60. The MACD indicator also confirms downward momentum.

Key level to watch: A sustained move above $12.31 (7-day exponential moving average) would be needed to signal a potential price recovery.

2. Market-Wide Risk-Off Sentiment (Bearish Impact)

Overview: The total cryptocurrency market value dropped 1.63% in the last day, while Bitcoin’s share of the market increased to 59.28%. At the same time, derivatives trading activity rose by 4.18%, indicating more traders are betting on price declines.

What this means: Investors are shifting their focus to Bitcoin as a safer option during uncertain times, putting pressure on altcoins like GT. The Fear & Greed Index reading of 25 reflects a cautious market, reducing demand for riskier tokens.

3. Limited Impact from Fundamentals (Mixed Signals)

Overview: Gate’s recent announcement on November 3 confirmed $11.67 billion in reserves with a strong 124% reserve ratio, and the company expanded its operations into Australia. However, these positive developments were overshadowed by broader economic challenges.

What this means: Although these steps improve GateToken’s long-term trustworthiness, they haven’t yet sparked increased buying. Trading volume for GT fell 37.45% to $5.45 million in 24 hours, showing weak market interest.

Conclusion

GateToken’s recent price drop is mainly due to technical weaknesses and a cautious crypto market, despite Gate’s solid operational progress. The low trading volume suggests investors are waiting for clearer signs before making moves.

Key levels to watch: Will GT hold above $11.86 amid growing Bitcoin dominance, or will it test the October low near $10.60? Keep an eye on today’s U.S. Core PCE inflation data for broader economic signals that could influence the market.

What could affect the price of GT?

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What are people saying about GT?

GT holders are optimistic about token burns reducing supply and the growth of the Gate ecosystem. Here’s what’s trending:

1. Gate Layer’s Web3 push – GT now powers a fast Layer 2 network handling over 5,700 transactions per second (TPS)
2. $35 million quarterly burn – 60% of GT tokens have been destroyed, increasing scarcity
3. Gate Fun’s meme contests – 9,000 GT tokens are being offered as rewards in trading competitions

Deep Dive

1. Gate Layer’s GT integration is a positive sign

According to @n0day0ff, a crypto analyst with nearly 40,000 followers:
"GT is now the gas token for the network, with over 60% already burned. Staking GT actually helps power the chain."
See original post

What this means: GT’s role is expanding as it becomes the main token used for transactions and staking on Gate’s new Layer 2 network, which is built on the OP Stack technology. This network processes 5,700 transactions per second with 1-second block times. Since 60% of GT’s supply has been burned (destroyed), fewer tokens are available, which could push prices higher if demand increases.

2. $35 million GT burn in Q3 strengthens deflation

Crypto commentator @Michigan409 shared:
"Another $35.3 million worth of GT burned… showing real utility behind the token."
See original post

What this means: In the third quarter, 2.1 million GT tokens (valued at $35 million) were burned, bringing the total burned tokens to 182.6 million GT—about 60.88% of the original supply. This ongoing reduction in supply, combined with GT’s use in Gate’s Perpetual Decentralized Exchange (Perp DEX) and the Meme Go platform, provides strong fundamental support for the token.

3. Gate Fun’s trading contests boost GT demand

The official Gate Wallet account announced:
"Trade to share 6,000 GT rewards" through meme contests and new token launches.
See original post

What this means: Gate Fun, an on-chain launchpad with gamified rewards, is offering a total of 9,000 GT tokens across various events to encourage trading activity. This helps lock GT tokens into the ecosystem, potentially increasing demand—even though GT’s price has dropped about 25% in the past month.

Conclusion

The overall outlook on GT is cautiously optimistic. Aggressive token burns have reduced supply by over 60%, which supports the token’s value. However, broader market challenges remain, with Bitcoin dominance at 59.3% and the Fear & Greed Index at 25, indicating market caution. Gate’s expanding ecosystem adds new uses for GT, but it’s important to watch the $16.20 support level highlighted in Gate’s technical analysis. If GT falls below this level for an extended period, it could signal a deeper price correction.

What is the latest news about GT?

GateToken is gaining momentum through transparency and growth as its ecosystem expands. Here are the key updates:

1. Proof of Reserves Tops $11.6 Billion (Nov 3, 2025) – Gate holds reserves worth 124% of user assets across 500+ cryptocurrencies, boosting trust.
2. Launch in Australia with AUSTRAC Registration (Nov 3, 2025) – New local services comply with regulations to support growth in the Australian market.
3. Acquisition of Perpetual DEX by Gate Ventures (Oct 29, 2025) – Integrating ADEN aims to increase GateToken’s use in decentralized finance (DeFi).

In-Depth Look

1. Proof of Reserves Tops $11.6 Billion (Nov 3, 2025)

Summary:
Gate’s latest Proof of Reserves report shows $11.67 billion in assets, which is 124% of the total user balances as of October 28. This covers nearly 500 different cryptocurrencies. For example, Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) reserves exceed user holdings by 33.96%, 25.93%, and 18.74%, respectively. GateToken (GT) itself has a reserve ratio of 150.98%.

Why it matters:
This strong reserve position reassures users that Gate is financially stable, even during a recent 25.94% drop in GT’s price over 30 days. High reserve ratios show Gate’s commitment to security and transparency, which can attract investors looking for trustworthy platforms. (Gate)

2. Launch in Australia with AUSTRAC Registration (Nov 3, 2025)

Summary:
Gate has officially entered the Australian market after registering with AUSTRAC, the country’s financial intelligence agency. The platform now offers localized features like secure trading with SSL encryption, cold storage for assets, and instant deposits and withdrawals. CEO Dr. Han highlighted that compliance and security are key to Gate’s global growth strategy.

Why it matters:
Having regulatory approval in Australia, along with existing licenses in Malta and Dubai, strengthens Gate’s reputation amid increasing global crypto regulations. This expansion could lead to more users and higher trading volumes, benefiting GateToken adoption. (Crypto.news)

3. Acquisition of Perpetual DEX by Gate Ventures (Oct 29, 2025)

Summary:
Gate Ventures acquired ADEN, a leading decentralized perpetual exchange with over $20 billion in monthly trading volume. ADEN will move to Gate Layer, an Ethereum-compatible Layer 2 network, by November 3. This will allow integration with Gate’s Perp DEX for cross-chain trading opportunities.

Why it matters:
This move could increase demand for GateToken, which is used as the gas token and staking asset on Gate Layer. While this acquisition diversifies Gate’s DeFi offerings, the competitive nature of the perpetual DEX market means success is not guaranteed. (Yahoo Finance)

Conclusion

GateToken’s recent developments—strong proof of reserves, regulatory expansion, and deeper DeFi integration—show a focus on building trust and a robust ecosystem. Although GT’s price has faced pressure from broader market trends (down 28.83% over 90 days), its deflationary supply model (with 60.88% of tokens burned) and growing use within Gate Layer and DeFi products could support a rebound. The question remains: can GT’s role in Gate’s “All in Web3” strategy overcome the challenges of the wider market?

What is expected in the development of GT?

GateToken’s roadmap is focused on growing its ecosystem by adopting Layer 2 technology, reducing token supply through burns, and integrating Web3 products.

1. Gate Layer Expansion (Q4 2025) – Improving compatibility with Ethereum and adding tools for cross-chain use.
2. Q4 2025 GT Burn (December 2025) – Permanently removing about 2 million GT tokens from circulation.
3. Gate Perp DEX Full Launch (Q1 2026) – Launching a professional-grade platform for perpetual trading.
4. GateChain v21 Upgrade (Q1 2026) – Enhancing security and optimizing Ethereum Virtual Machine (EVM) performance.

Deep Dive

1. Gate Layer Expansion (Q4 2025)

Overview: Gate Layer is a fast Layer 2 solution built on the OP Stack. It plans to improve how different blockchains work together using LayerZero technology and make it easier for developers to build on the platform. Recent updates (GateLayer tweet) include opening public access points (RPCs) and ready-to-use nodes to attract more developers.

What this means: This is positive for GateToken (GT) because as more people use the network, GT’s role as the exclusive token for transaction fees grows. However, there’s a risk that Gate Layer might not grow as quickly as competitors like Base.

2. Q4 2025 GT Burn (December 2025)

Overview: GateToken follows a deflationary model, meaning it regularly removes tokens from circulation to reduce supply. In Q3 2025, 2.1 million GT tokens worth about $35.3 million were burned. The next burn, expected in December 2025, will remove roughly 2 million GT tokens (NullTX report).

What this means: Token burns can reduce selling pressure over time, which is generally good for price stability or growth. However, the immediate effect on price depends on overall market conditions.

3. Gate Perp DEX Full Launch (Q1 2026)

Overview: After a public beta in September 2025, Gate Perp DEX plans a full launch with better liquidity and features aimed at institutional traders. This decentralized exchange uses GT tokens to pay fees, linking token demand to trading activity (Gate announcement).

What this means: This could be positive if Gate Perp DEX attracts enough users, especially from Gate’s existing community. But if competitors like dYdX keep their lead, growth might be limited.

4. GateChain v21 Upgrade (Q1 2026)

Overview: Following the v20 upgrade in September 2025, which added support for Ethereum’s EIP-4844, the v21 upgrade will focus on making transactions more efficient and compatible with Ethereum’s upcoming Cancun upgrade (GateChain docs).

What this means: This is mostly a technical improvement that could make the platform more attractive to developers but won’t have an immediate impact on everyday users.

Conclusion

GateToken’s roadmap aims to grow its ecosystem through Layer 2 adoption, token burns, and new DeFi tools. These steps are important for increasing GT’s usefulness and scarcity. While there are positive signs, success depends on how well these plans are executed and overall market conditions.

The key question remains: Can GateLayer gain significant market share from established Layer 2 solutions while keeping GT’s deflationary benefits intact?

What updates are there in the GT code base?

GateToken’s technology received major updates in the third and fourth quarters of 2025, focusing on better compatibility with Ethereum and improving scalability for Layer 2 solutions.

1. EVM Cancun Upgrade (September 15, 2025) – Improved Ethereum compatibility and made transactions more gas-efficient.
2. Blob Transactions with EIP-4844 (September 15, 2025) – Added support for scalable data storage, especially for Layer 2 applications.
3. Gate Layer Developer Toolkit (October 31, 2025) – Made it easier for developers to access the network and set up nodes.

Deep Dive

1. EVM Cancun Upgrade (September 15, 2025)

Overview: GateChain updated its Ethereum Virtual Machine (EVM) to the latest Ethereum Cancun version, adopting Ethereum’s newest improvements.

Key updates include:

• EIP-3855 (PUSH0): Lowers the cost of deploying smart contracts.
• EIP-6780: Prevents misuse of the SELFDESTRUCT command, improving security.
• Adjusted gas fees for accessing state data and temporary storage (EIP-2929 and EIP-1153).

Why it matters: These changes make it easier and cheaper for developers to build on GateChain, attract apps originally designed for Ethereum, and make transaction costs more predictable. This is a positive development for GateToken (GT). (Source)

2. Blob Transactions with EIP-4844 (September 15, 2025)

Overview: GateChain implemented Proto-Danksharding, a method to support large-scale data storage optimized for Layer 2 solutions.

Technical highlights:

• Introduced blob-carrying transactions, which allow cheaper data storage for Layer 2 applications.
• Changed how gas fees are calculated for blob data compared to regular transaction data.

Why it matters: While this update doesn’t have an immediate impact on GT, it sets the stage for long-term growth by making GateChain a scalable platform for high-performance decentralized apps. (Source)

3. Gate Layer Developer Toolkit (October 31, 2025)

Overview: Released tools including ready-to-use software, pre-configured nodes, and approved RPC (Remote Procedure Call) endpoints for Gate Layer, GT’s Layer 2 network.

Key features:

• Public RPC endpoints for syncing and querying data without restrictions.
• Transaction RPC endpoints that require approval for security.
• Seed nodes that let developers join the network quickly.

Why it matters: This toolkit lowers the technical barriers for developers building on Gate Layer, which increases demand for GT as the network’s gas token. This is a strong positive for GT’s ecosystem growth. (Source)

Conclusion

GateToken’s recent upgrades focus on aligning closely with Ethereum’s latest standards and enhancing Layer 2 scalability. With the EVM Cancun improvements and support for blob transactions via EIP-4844, GT is well-positioned to attract developers looking for affordable, high-speed blockchain environments. As Gate Layer adoption grows, GT’s role in powering this ecosystem is likely to expand significantly.