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Why did the price of GT fall?

GateToken (GT) dropped 1.52% in the last 24 hours, performing worse than the overall crypto market, which fell 0.84%. Here’s why:

  1. Market-wide caution – The Crypto Fear & Greed Index is at 27, signaling "Fear," which pushed investors toward Bitcoin, increasing its market dominance to 59.11%.
  2. Competition among exchange tokens – GT is facing pressure from other popular exchange tokens like BNB, OKB, and CRO.
  3. Technical resistance levels – GT’s price hit a resistance point at $10.26 and is trading below important moving averages ($10.22 for 7-day and $10.31 for 30-day).

Deep Dive

1. Market Caution Hurts Mid-Sized Tokens

The crypto market saw $97 billion in trading volume over the past day, down 6.1% from the previous day. Bitcoin’s dominance rose to 59.11% as investors looked for safer bets. When fear rises, investors tend to move away from mid-sized tokens like GT and favor Bitcoin instead.

This explains why GT’s price fell more sharply (-1.52%) than the overall market (-0.84%). Exchange tokens like GT usually don’t perform well during periods when Bitcoin is leading the market, often called "Bitcoin Season" (with the Altcoin Season Index at 19).

2. Competition from Other Exchange Tokens

GT is currently the 7th largest centralized exchange (CEX) token by market value, with $812 million in market cap. It trails behind bigger players like BNB, LEO, and CRO (source).

GT benefits from a deflationary mechanism where the platform buys back and burns tokens, such as the $35.3 million burned in Q3 2025 (source). However, its smaller size means it gets less attention compared to larger tokens. New tokens like Bitget’s BGB also add to the competition, making it harder for GT to stand out.

3. Technical Analysis Shows Resistance

GT’s price is currently below key moving averages: the 7-day average at $10.22 and the 30-day average at $10.31. The Relative Strength Index (RSI) is 44.27, indicating neither strong buying nor selling momentum.

The $10.26 price level is acting as a resistance point. If GT falls below the 38.2% Fibonacci retracement level (between $10.34 and $10.02), it could test support levels around $9.80 to $9.51.

Conclusion

GT’s recent price drop is due to overall market caution, competition from other exchange tokens, and technical selling pressure. Its deflationary token burns (with 60.88% of supply already burned) and adoption of Gate Layer provide some long-term support. However, in the short term, investors should be cautious.

Key level to watch: Can GT hold above the 50% Fibonacci retracement at $10.18 to avoid retesting the September low of $9.51?

{{technical_analysis_coin_candle_chart}}


What could affect the price of GT?

GT’s price is caught between the positive effects of ecosystem growth and the challenges of a crowded market.

  1. Deflationary Burns – Over 60% of GT’s total supply has been permanently removed, reducing how many tokens are available.
  2. Layer 2 Adoption – Gate Layer, a fast blockchain network processing 5,700 transactions per second, requires GT tokens to pay transaction fees.
  3. Exchange Token Competition – Big players like BNB and OKB dominate the market, limiting GT’s potential to grow as an exchange token.

Deep Dive

1. Deflationary Mechanics (Positive for Price)

Overview: Gate.io burns 15% of its quarterly exchange profits by destroying GT tokens. So far, about 182.65 million GT tokens—worth nearly $3 billion—have been burned. In the third quarter of 2025 alone, 2.1 million GT tokens (valued at $35.32 million) were burned, according to this on-chain transaction. This has reduced the circulating supply to 80.2 million GT, down more than 60% from the original 300 million.

What this means: By permanently removing tokens from circulation, Gate.io creates scarcity, which can help support or increase GT’s price—especially if the platform continues to generate strong revenue. Gate.io’s monthly trading volume hit $160 billion (source: U.Today), which could translate to about $8.5 million worth of GT burned every quarter at current rates.

2. Gate Layer Ecosystem (Mixed Outlook)

Overview: Gate Layer launched in September 2025 as a Layer 2 blockchain compatible with Ethereum. It uses GT tokens to pay for transaction fees and staking. The network can handle 5,700 transactions per second, charging about $30 for every 1 million transactions. It also supports cross-chain swaps through integration with LayerZero. However, adoption is still early—decentralized exchange (DEX) volume on Gate Layer reached $1 billion in Q4, compared to $160 billion on centralized exchanges (CEX).

What this means: GT’s role in Gate Layer shows promise as it expands its use cases. However, other Layer 2 networks like Base and opBNB have 10 to 100 times more total value locked (TVL), meaning they have more assets and users. The success of Gate Layer depends on attracting decentralized finance (DeFi) applications. Currently, 26 tokens have been launched using Gate Fun, a no-code platform for developers.

3. Exchange Token Competition (Challenges Ahead)

Overview: GT ranks 7th among centralized exchange tokens by market capitalization, valued at $811 million. It trails behind giants like BNB ($59 billion) and OKB ($12 billion). Despite Gate.io’s 46 million users, GT’s trading activity (turnover ratio of 0.00426) is much lower than BNB’s 0.019, indicating less liquidity and trading interest (CoinMarketCap).

What this means: GT’s price doesn’t always reflect the platform’s growth. For example, even though Gate.io’s share of the derivatives market grew to 10-11% in 2025, GT’s price dropped 37.7% year-to-date. Additionally, regulatory uncertainties around exchange tokens—such as compliance with the EU’s Markets in Crypto-Assets (MiCA) rules—add extra risk.

Conclusion

GT benefits from strong deflationary token burns and growing utility on Gate Layer, which could boost its value. However, stiff competition from established exchange tokens and limited liquidity remain significant challenges. Keep an eye on the Q4 2025 token burn scheduled for late January 2026 and Gate Layer’s developer activity to see if GT can evolve from a simple fee-discount token into a key gas token for Web3 applications.


What are people saying about GT?

The GateToken (GT) community is divided between hopeful supporters who see value in its shrinking supply and skeptics who question its role as an exchange token. Here’s what’s currently trending:

  1. GT’s $35 million token burn in Q3 raises hopes for scarcity
  2. Launch of Gate Layer, an EVM-compatible Layer 2, sparks debate over GT’s real-world use
  3. Centralized exchange (CEX) token rankings show GT struggling to move beyond the middle tier

Deep Dive

1. @Michigan409: $35M GT Burn Shows Strong Ecosystem Support 🔥 bullish

“Another $35.3M GT burn done this quarter. GT is literally powering the whole ecosystem – real utility behind the token.”
– @Michigan409 (22K followers · 143K likes · 2025-10-15 09:04 UTC)
View original post
What this means: This is positive for GT because regularly burning tokens (182 million GT destroyed since 2019) reduces the total supply, which can increase value. At the same time, products like Gate Perp DEX create new ways for people to use GT, boosting demand.

2. @n0day0ff: Gate Layer Launch Tests GT’s Web3 Potential ⛓️ mixed

“GT becoming the gas token… over 60% already burned. Feels like Gate’s leaning all-in on Web3.”
– @n0day0ff (38.7K followers · 1.7K likes · 2025-09-25 07:50 UTC)
View original post
What this means: This is a mixed signal for GT. Gate Layer’s fast transaction speed (5,000 TPS) and compatibility with Ethereum-based apps (EVM) open up new uses for GT. However, staking requirements might lock up tokens temporarily, which could limit liquidity during uncertain market times.

3. @WhisprNews: GT Ranks #7 Among CEX Tokens 🥉 bearish

“Top 10 CEX tokens by market cap: $GT remains 7th behind BNB, LEO, CRO, BGB, OKB, KCS.”
– @WhisprNews (3.7K followers · 4.4K likes · 2025-12-23 01:41 UTC)
View original post
What this means: This is a negative sign for GT. Despite aggressive token burns, GT’s market cap remains stuck at #7 among exchange tokens. This suggests strong competition from bigger players like BNB is limiting GT’s growth potential.

Conclusion

The outlook for GateToken is mixed. On one hand, deflationary token burns and new features like Gate Layer show serious efforts to build a strong ecosystem. On the other hand, GT’s 35% price drop over the past 60 days and its mid-tier ranking among exchange tokens highlight the challenges it faces against larger rivals like BNB. Keep an eye on Q4 burn numbers (expected to exceed $3 billion total) and the trading activity on Gate Perp DEX for clues on where GT might be headed.


What is the latest news about GT?

GateToken (GT) is closing out 2025 with special VIP rewards and growth in its ecosystem, maintaining its position as a top-10 exchange token. Here are the key updates:

  1. Year-End VIP Bonanza (December 19, 2025) – High-yield staking options, token giveaways, and luxury prizes like gold bars boost GT demand.
  2. $160 Billion Trading Volume Milestone (December 12, 2025) – New regulatory approvals and expansion of Gate’s Layer 2 network strengthen its market standing.
  3. Stable Exchange Token Ranking (December 23, 2025) – GT holds the #7 spot among exchange tokens despite a market slowdown.

In-Depth Look

1. Year-End VIP Bonanza (December 19, 2025)

What happened: Gate launched a VIP program in December offering GT holders attractive fixed-term staking returns—up to 285% annually. They also received GT airdrops for contract trading, such as rewards in ADA and ENA tokens, plus luxury prizes like 10-gram gold bars. VIP members get early access to Web3 staking events, including a large MAT token pool on Gate Layer.
Why it matters: These rewards encourage users to hold GT and stay active on the platform, which can help keep demand steady. However, strong competition from other exchange tokens like BNB and OKB, along with a generally calm crypto market (fear index at 27), might limit how much GT’s price can rise. (Gate Blog)

2. $160 Billion Trading Volume Milestone (December 12, 2025)

What happened: Gate reached $160 billion in monthly spot trading volume in 2025. It also secured licenses in the EU and Australia and launched Gate Layer, an Ethereum-compatible Layer 2 network with over 100 million wallets, where GT is used to pay transaction fees. The derivatives market share doubled to around 10-11%, with the Perpetual DEX clearing over $1 billion in on-chain trades.
Why it matters: Growth in trading volume and new infrastructure directly increase GT’s usefulness, as fees collected help reduce supply through token burns. Still, GT’s price dropped 35% over 60 days, showing it’s sensitive to overall crypto market liquidity, which recently declined slightly. (U.Today)

3. Stable Exchange Token Ranking (December 23, 2025)

What happened: GT remains the 7th-largest exchange token by market value at $811 million. It trails behind BNB and OKB but is ahead of MX and FTT. Daily trading volume for GT is $3.45 million, down 27% from the previous week, reflecting lower activity in altcoins while Bitcoin dominates with 59% market share.
Why it matters: GT’s position in the middle tier of exchange tokens provides some stability. Future growth depends on wider adoption of Gate Layer and continued reduction of GT’s circulating supply, which has seen over 60% of tokens burned since launch. (@WhisprNews)

Conclusion

As GateToken moves into 2026, it relies on VIP rewards and infrastructure improvements to maintain momentum. However, challenges like economic uncertainty and competition from other exchange tokens remain. With GT’s price down 37% since its September peak, the question is whether its Layer 2 ecosystem can drive new growth as the “exchange token season” cools off.


What is expected in the development of GT?

GateToken’s roadmap highlights plans to grow its ecosystem, improve token economics, and manage token releases strategically.

  1. Token Unlock (December 26, 2025) – $110.97 million worth of GT tokens will be released, representing 0.67% of the total supply.
  2. Gate Layer Expansion – Introduction of a Layer 2 network compatible with Ethereum, using GT as the transaction fee token.
  3. GT Burn Mechanism – Regular quarterly token burns to reduce the overall supply.

In-Depth Overview

1. Token Unlock (December 26, 2025)

On December 26, 2025, approximately $110.97 million in GT tokens (about 0.67% of the total supply) will become available (Crypto Calendar). Large token unlocks like this can sometimes lead to increased selling, which may put downward pressure on the price. However, GateToken has already burned 60.88% of its initial supply, which helps reduce the risk of price drops caused by this unlock.

What this means:
In the short term, the price may face some pressure due to more tokens entering circulation. But if the Gate Layer network attracts enough users, the increased demand could balance or even outweigh the supply increase, supporting a positive outlook over time.

2. Gate Layer Expansion

Gate Layer, GateToken’s Layer 2 network, launched in September 2025 (Gate Layer). It uses OP Stack technology to process over 5,700 transactions per second with very low fees—less than $30 for a million transactions. GT is the only token used to pay for these transaction fees, increasing its utility. Key features include:

What this means:
This expansion is positive for GT because more network use means more demand for the token. However, success depends on attracting developers and liquidity. Gate Layer faces competition from other popular networks like BNB Chain and Base, which could impact its growth.

3. GT Burn Mechanism

In the third quarter of 2025, GateToken burned 2.1 million GT tokens (worth $35.3 million), bringing the total burned to 182.65 million GT—about 60.88% of the original supply (Q3 Report). These burns happen quarterly and include a fee model similar to Ethereum’s EIP-1559. The next scheduled burn is expected in January 2026.

What this means:
Burning tokens reduces the total supply, which can help increase the token’s value over time by making it scarcer. Since burns are tied to platform revenue, this creates a cycle where more usage leads to more burns, supporting long-term value.

Conclusion

GateToken’s roadmap carefully balances reducing supply through burns and token unlocks with increasing demand through the Gate Layer network. The main challenges include getting enough users and developers to adopt the Layer 2 solution and navigating regulatory scrutiny around exchange tokens. The key question is: Will GateToken’s deflationary approach keep up with market demand? Keep an eye on developer activity on Gate Layer and how GT’s price reacts after the token unlock.


What updates are there in the GT code base?

GateToken’s technology has received major updates that improve its speed, security, and integration with Layer 2 solutions.

  1. Gate Layer Mainnet Launch (September 25, 2025) – A fast Layer 2 network designed for decentralized finance (DeFi) and Web3 applications.
  2. Cancun & EIP-4844 Upgrade (September 13, 2025) – Made storing data on Layer 2 networks much cheaper using new transaction types called Blob transactions.
  3. Transaction Fixes (August 20, 2025) – Fixed errors in how transaction fees were calculated, improving accuracy and reliability.

Deep Dive

1. Gate Layer Mainnet Launch (September 25, 2025)

Overview: Gate Layer, a Layer 2 network built on Optimism’s OP Stack, officially launched using GateToken (GT) as its gas token—the currency used to pay transaction fees. It can handle 5,713 transactions per second (TPS) with fees as low as $30 for every million transactions.

Technical details:

What this means: This is positive news for GT holders because it increases the token’s use as the only gas token on a fast, low-cost network. As more people use Layer 2 solutions, demand for GT is expected to grow (Source).

2. Cancun & EIP-4844 Upgrade (September 13, 2025)

Overview: GateChain upgraded to version 1.2.0, adopting Ethereum’s Cancun EVM and EIP-4844 (also known as Proto-Danksharding) to make Layer 2 data storage much cheaper.

Technical details:

What this means: While this upgrade doesn’t immediately affect GT’s price, it’s positive for the long term. Lower Layer 2 costs can encourage more users and developers to join the ecosystem, increasing GT’s importance as a settlement token (Source).

3. Transaction Fixes (August 20, 2025)

Overview: The v1.1.8 update fixed a bug where some successful transactions were incorrectly marked as “out of gas,” which means they appeared to fail when they actually succeeded.

Technical details:

What this means: This update builds trust in the network by making transaction statuses more reliable—an important factor for users involved in DeFi and trading (Source).

Conclusion

GateToken’s recent updates focus on making the network faster, more cost-effective, and more reliable. These improvements strengthen GT’s role in the expanding Web3 space. Looking ahead, it will be interesting to see how GT’s deflationary model interacts with growing Layer 2 demand to shape its future value.