Why did the price of GT go up?

GateToken (GT) increased by 0.7% over the past 24 hours, outperforming the mostly flat cryptocurrency market (total market cap up just 0.03%). Tokens linked to exchanges like GT showed relative strength. Here are the main reasons:

1. Platform Achievements – Recent awards, such as the “Crypto Industry Icon” in Dubai, and growing use of Gate’s Layer 2 solution boosted confidence.
2. Expanded Token Use – GT is used as the gas token for Gate Layer, a fast Layer 2 network handling over 5,700 transactions per second, and over 60% of GT’s supply has been permanently removed (burned), reducing available tokens.
3. Market Positioning – GT’s price movements have a low correlation with Bitcoin, making it attractive as a safer option when markets are uncertain.

Deep Dive

1. Strategic Wins & Ecosystem Growth (Positive Outlook)

Overview: On December 12, Gate received the “Crypto Industry Icon” award from Entrepreneur Middle East, recognizing its large user base of 46 million, $160 billion in monthly trading volume, and regulatory licenses in the EU, Australia, and Dubai. At the same time, Gate Layer—Gate’s Layer 2 network built on the OP Stack—passed 100 million wallets, with GT as the only gas token used for transactions (Gate.com).

What this means: Winning awards like this boosts Gate’s reputation among institutions and regulators. The growing use of Gate Layer increases demand for GT since it’s required to pay transaction fees. Gate Layer’s fast 1-second block times and compatibility with Ethereum’s smart contracts (EVM) make it easier for developers to build apps, which could further increase GT’s use.

Watch: Upcoming data on token burns for Q4 2025, as previous quarters saw about $35 million worth of GT permanently removed from circulation.

2. Exchange Token Resilience (Mixed Signals)

Overview: GT’s 0.7% price increase over 24 hours contrasts with declines in other exchange tokens like BNB (-0.67%) and OKB (-1.45%), according to data from @impandoratech. Social media analysis from December 2 also noted GT’s appeal as a “safe-haven” during market volatility (source).

What this means: Exchange tokens tend to be more stable when other cryptocurrencies drop because their value is tied to the exchange’s revenue (like fees and listings) rather than pure speculation. However, GT’s trading volume dropped 55% to $2.06 million, which suggests the recent price rise may not have strong momentum behind it.

3. Technical Rebound at Key Level

Overview: GT’s price bounced back to its 50% Fibonacci retracement level at $10.68, supported by a bullish MACD crossover (a technical indicator showing momentum) and an RSI of 44.9, indicating there’s room for the price to rise before it becomes overbought.

What this means: Short-term traders might be buying near this support level, but the 200-day exponential moving average (EMA) at $15.55 remains a significant resistance point. If GT closes above $10.80 (the 38.2% Fibonacci level), it could signal a stronger recovery ahead.

Conclusion

GT’s modest price increase reflects its dual role as a utility token powering Gate’s growing ecosystem and as a relatively stable asset during uncertain market conditions. While the price rise lacks strong trading volume, ongoing token burns and increased Layer 2 adoption provide solid fundamental support.

Key watch: Will GT maintain its position above $10.35 (61.8% Fibonacci level) as the broader market reacts to the Federal Reserve’s latest unclear signals on interest rate cuts?

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What could affect the price of GT?

GateToken’s (GT) price depends on how much the exchange grows, the token’s design, and overall market trends.

1. Ecosystem Growth – Adoption of Gate Layer and Web3 products can increase GT’s usefulness.
2. Token Burns – Destroying over 60% of GT’s supply creates scarcity, which can boost value.
3. Competition from Other Exchange Tokens – Big players like BNB and OKB limit GT’s potential gains.

Deep Dive

1. Gate Layer Adoption & Product Growth (Positive for GT)

What’s happening: Gate has launched a new Layer 2 blockchain called Gate Layer, built on the OP Stack. It can handle 5,700 transactions per second with very low fees (about 3 cents per transaction). GT is used to pay these fees. This Layer 2 supports platforms like Gate Perp DEX, which has over $1 billion in trading volume, and Gate Fun, a tool for launching tokens without coding. Gate has also secured important regulatory licenses in Europe (MiCA) and Dubai (VARA), allowing it to expand globally.

Why it matters: The more people use Gate Layer and its products, the more GT is needed. Every transaction and token launch burns (destroys) some GT tokens. If Gate Layer reaches over 100 million wallets, it could burn 5-7% of GT’s circulating supply each year just from transaction fees.

2. Hyper-Deflationary Tokenomics (Positive for GT)

What’s happening: Since 2019, 182.6 million GT tokens have been burned, which is over 60% of the total supply. In the third quarter of 2025 alone, $35.3 million worth of GT was burned. This happens because 20% of platform fees go to burning tokens, and there’s also a system similar to Ethereum’s EIP-1559 that destroys a base fee with every transaction.

Why it matters: At the current price of $10.44, about $2.1 million worth of GT is burned every month. That’s about 13% of the monthly trading volume ($248 million). This reduction in supply has historically helped GT perform better than competitors like CRO and OKB during strong market rallies.

3. Exchange Token Competition (Challenges for GT)

What’s happening: GT’s market value is $837 million, which is much smaller than Binance Coin (BNB) at $85 billion and OKB at $2.4 billion. While GT’s derivatives trading is growing fast (doubling month-over-month), Binance and OKX control about 68% of the centralized exchange (CEX) market, according to CoinGecko.

Why it matters: For GT to increase its market value significantly, it needs to grow its platform volume by 2 to 3 times. This means GT must attract users away from well-established competitors, which is a tough challenge.

Conclusion

GT’s future depends on Gate’s success in turning exchange users into active Layer 2 users while keeping a strong token burn rate of 6.1% per quarter. The $9.29 price level is an important support point, matching average prices for exchange tokens. If GT falls below this, it could indicate that negative market forces are outweighing the token’s strong fundamentals. The big question is: Can Gate Layer’s wallet growth overcome the expected “altcoin winter” in 2026?

What are people saying about GT?

The GateToken (GT) community is excited about new developments in Layer 2 technology and ongoing token burns that reduce supply. Here’s what’s making headlines:

1. Gate Layer shifts to Web3 – GT is now the gas token powering a fast Layer 2 network
2. $35 million token burn in Q3 – Over 60% of GT’s supply has been permanently removed since 2019
3. Airdrop excitement – The Alpha Points system is boosting demand for GT

Deep Dive

1. @n0day0ff: Gate Layer boosts GT’s usefulness bullish

“GT is now the gas token… more than 60% already burned. Staking GT actually supports the network.”
– @n0day0ff (38.7K followers · 1.2M impressions · 2025-09-25 07:50 UTC)
View original post
What this means: This is positive for GT. Gate Layer’s Layer 2 network, built on the OP Stack, can handle over 5,700 transactions per second with 1-second block times. This creates new reasons for people to use and stake GT, increasing its value.

2. @Nicat_eth: Exchange token performance is mixed neutral to bullish

“GT closes in positive territory despite market dips… but faces competition from other exchange tokens and regulatory challenges.”
– @Nicat_eth (7.5K followers · 320K impressions · 2025-12-02 08:08 UTC)
View original post
What this means: GT is holding steady with a 1.78% daily gain, even though it’s down 10.49% over the past month. This shows some stability, but competition from tokens like BNB and OKB, plus regulatory concerns, could limit growth.

3. Gate Team: $35 million token burn in Q3 bullish

“2.1 million GT tokens worth $35.32 million were burned in Q3 2025… total burned value now at $2.95 billion.”
– Official announcement (2025-10-15 07:10 UTC)
View announcement
What this means: This is a strong positive sign. Burning tokens reduces the total supply, which can increase value by limiting availability. Since 2019, over 60% of GT’s supply has been burned. Meanwhile, products like Gate Perp DEX help create natural demand for GT.

Conclusion

Overall, the outlook for GateToken (GT) is cautiously optimistic. The combination of aggressive token burns and growing Layer 2 network use supports its value. However, competition from other exchange tokens remains a challenge. Keep an eye on the Q4 2025 token burn, which analysts expect could push total burned tokens past $3 billion, potentially tightening supply further as Gate Layer adoption increases. The key question: Will the reduced supply outweigh the pressure from competing tokens?

What is the latest news about GT?

GateToken is gaining momentum thanks to ecosystem growth and regulatory achievements. Here’s the latest update:

1. Gate Hits $160 Billion Trading Volume in 2025 (December 12, 2025) – The platform sees record user growth and launches its Gate Layer Layer 2 blockchain.
2. Crypto Industry Icon Award in Dubai (December 12, 2025) – Recognized for its Web3 infrastructure and services for institutions.
3. Token CTO Application Channel Launch (December 9, 2025) – A new way for communities to revive abandoned tokens and keep projects alive.

Deep Dive

1. Gate Hits $160 Billion Trading Volume in 2025 (December 12, 2025)

Overview:
Gate reached 46 million users, doubling its user base from the previous year, and hit $160 billion in monthly spot trading volume in 2025. It also ranked among the top four platforms globally for derivatives trading. Important milestones include securing regulatory licenses in Europe (MiCA/EU) and Australia (AUSTRAC), launching Gate Layer—a Layer 2 blockchain built on OP Stack that supports 100 million wallets—and Gate Perp DEX, which handles over $1 billion in on-chain derivatives volume. GateToken (GT) became the exclusive gas token for Gate Layer, with more than 60% of its supply burned to reduce circulation.

What this means:
This growth is positive for GateToken because the token’s value is linked to how much it’s used within the ecosystem. The burning of tokens (182.65 million GT burned so far this year) and increased staking demand help support its value. However, despite these strong fundamentals, GT’s price has dropped about 10.5% over the past 30 days, trading at $10.43, indicating that the market may not yet fully recognize its potential (U.Today).

2. Crypto Industry Icon Award in Dubai (December 12, 2025)

Overview:
Gate received the “Crypto Industry Icon” award from Entrepreneur Middle East. This award highlights Gate’s achievements in building Web3 infrastructure like Gate Layer, Perp DEX, and Meme Go, as well as its institutional services such as CrossEx, a platform that enables trading across different exchanges.

What this means:
This recognition boosts GateToken’s credibility, especially during a time when market sentiment is cautious (Fear & Greed Index at 26). Still, GateToken faces strong competition from larger tokens like Binance’s BNB and OKB. GT’s market capitalization is $837 million, which is much smaller compared to Binance’s $38 billion BNB (Gate.com).

3. Token CTO Application Channel Launch (December 9, 2025)

Overview:
Gate Fun introduced a new feature allowing communities to take control of abandoned token projects through a Token CTO role. This role helps maintain and develop these projects by earning protocol fees.

What this means:
This initiative could increase engagement within GateToken’s meme ecosystem and bring new life to stalled projects. While promising, it carries some risks related to how well these projects are managed. Notably, Gate Fun saw nearly 50% month-over-month growth in new token launches in November (Gate.com).

Conclusion

GateToken’s rapid adoption in 2025, supported by regulatory approvals and Layer 2 blockchain growth, contrasts with a 39% drop in its price over the past 90 days. This gap shows a disconnect between the token’s real-world use and how the market values it. As more GT tokens are burned (over 60% of supply destroyed) and Layer 2 adoption increases, there’s potential for this gap to close—especially as the crypto market’s Altcoin Season Index climbs from 21 to 78.

What is expected in the development of GT?

GateToken (GT) is making steady progress with these key updates:

1. Gate Fun Token CTO Launch (December 9, 2025) – A new community-led program to manage and revive abandoned tokens.
2. Q4 2025 GT Token Burn (Expected January 2026) – A planned reduction of GT supply to help increase its value.
3. Gate Layer Ecosystem Growth (Ongoing) – Expanding tools and decentralized finance (DeFi) projects to boost developer use and transactions.

In-Depth Look

1. Gate Fun Token CTO Launch (December 9, 2025)

What’s happening?
Gate Fun is a platform that lets users create tokens without coding. They’ve introduced the “Token CTO” program, which allows community members to take control of tokens that have been abandoned by their original developers. Approved participants can update token contracts and collect fees, helping keep these projects alive.

Why it matters:

• Positive: This strengthens GateToken’s role in managing projects and distributing fees, making GT more useful.
• Consideration: Success depends on how active and capable the community is in managing these projects.

2. Q4 2025 GT Token Burn (Expected January 2026)

What’s happening?
GateToken will remove about 2.1 million GT tokens from circulation as part of its quarterly “burn” process. This helps reduce the total supply, which can increase the token’s value over time. So far, over 60% of the original 300 million GT tokens have been burned.

Why it matters:

• Positive: Fewer tokens available can make GT more valuable, especially if trading activity increases.
• Consideration: The burn depends on platform revenue, which might drop during market downturns.

3. Gate Layer Ecosystem Growth (Ongoing)

What’s happening?
Gate Layer is a second-layer (L2) blockchain built on the OP Stack technology. It’s focused on attracting developers by offering new tools like RPC node deployment and helpful tutorials (GateLayer Docs). Popular projects like Perp DEX (with over $1 billion in trading volume) and Meme Go (a hub for meme tokens) are designed to increase demand for GT as the network’s exclusive gas token.

Why it matters:

• Positive: GT’s value is linked to the growth of the Gate Layer ecosystem since it’s needed to pay transaction fees.
• Consideration: Competing L2 platforms like Base and Arbitrum could limit Gate Layer’s growth.

Conclusion

GateToken’s plan focuses on making GT more useful through community governance and ecosystem development, while also reducing supply to support its value. Growth in the Gate Layer ecosystem could boost demand for GT, but challenges like competition and market conditions will play a big role. The key question is: How will GT balance its role as an exchange token with its ambitions in the broader Web3 space as the market recovers?

What updates are there in the GT code base?

GateToken (GT) is making important updates focused on improving Layer 2 scalability and providing better tools for developers.

1. Gate Layer Developer Tools (Oct 31, 2025) – Easier access to network resources and ready-to-use nodes for developers.
2. Gate Layer Core Launch (Sep 25, 2025) – A fast, Ethereum-compatible Layer 2 blockchain using GT as its gas token.
3. Testnet v4.0 Preparation (May 2020) – Early testing of proof-of-stake and cross-chain features.

In-Depth Look

1. Gate Layer Developer Tools (Oct 31, 2025)

What happened: Gate released key resources to help developers build on its Layer 2 network more easily.

They published binary files and example setups on GitHub (GateLayer_bin) that allow developers to deploy with just one click. Public RPC endpoints let anyone query data for free, while transaction-related requests require approval to prevent spam. Seed nodes come pre-configured, so developers don’t have to wait for manual syncing.

Why it matters: This is positive for GT because making development easier encourages more apps to join the network. More apps mean more use of GT as the network’s gas token, increasing its value. (Source)

2. Gate Layer Core Launch (Sep 25, 2025)

What happened: Gate Layer launched as a Layer 2 blockchain built on the OP Stack, capable of handling over 5,700 transactions per second and fully compatible with Ethereum’s smart contracts.

GT is now the only gas token used on this network. More than 60% of the total GT supply has been burned through transaction fees, reducing the available tokens. The launch also introduced three main products: Perp DEX (a platform for trading derivatives), Gate Fun (for launching new tokens), and Meme Go (focused on community-driven assets).

Why it matters: This is good news for GT because the token’s demand is directly linked to network activity through staking and burning. However, GT faces competition from other established Layer 2 solutions like Arbitrum, which could affect how widely it is adopted. (Source)

3. Testnet v4.0 Preparation (May 2020)

What happened: Early testnet versions focused on building the foundation for proof-of-stake consensus and cross-chain functionality.

Updates included verifying transactions in parallel to speed up processing and implementing penalties for nodes that act maliciously. The team also worked on advanced wallet security features and experimental addresses designed to resist future quantum computing threats.

Why it matters: Although these updates are from a few years ago, they set the stage for GT’s strong security approach. The focus on protecting against quantum computing risks remains important as that technology develops. (Source)

Conclusion

GateToken’s ongoing development focuses on building scalable infrastructure with Gate Layer and making it easier for developers to build on the network. While these updates improve GT’s usefulness, the project’s success depends on attracting enough developers and users to compete with other tokens linked to centralized exchanges. The key question is how GT will balance its role as a token connected to a centralized exchange with its ambitions for decentralized Layer 2 growth.