Deep Dive
1. Deflationary Mechanics (Bullish Impact)
Overview
Gate.io has burned 180.5M GT ($2.75B value) since 2019 through quarterly buybacks funded by 20% of trading fees. Circulating supply stands at 82.3M GT (27.4% of total), with 50M GT permanently locked for development.
What this means
Scarcity mechanics could amplify price upside during demand spikes. However, exchange revenue must sustain burns – derivatives volume rose 46.5% MoM in July 2025, suggesting fee income stability.
2. August Token Unlock (Bearish Impact)
Overview
On August 26, 119M GT (14.4% of circulating supply) unlocks. Historically, large CEX token unlocks like HUMA’s 30% release caused 15-20% price drops within 72 hours.
What this means
Short-term sell pressure is likely unless Gate.io implements countermeasures (e.g., staking incentives). The unlock coincides with neutral market sentiment (Fear & Greed Index 44), reducing absorption capacity.
3. Exchange Growth vs Rivals (Mixed Impact)
Overview
Gate.io’s derivatives volume hit $740B in July (+46.5% MoM), but BNB and BGB tokens outperformed GT’s 30d -0.8% return. New products like xStocks (tokenized equities) could attract TradFi users.
What this means
GT’s utility as a fee/launchpad token depends on maintaining product momentum. The 123% reserve coverage ratio ($12B assets) provides stability but doesn’t directly boost GT demand.
Conclusion
GT’s deflationary model and exchange growth create structural upside, but the August unlock and CEX token competition pose near-term risks. Technicals show GT trades below its 200D SMA ($19.40), with RSI 47 suggesting room for recovery if burns accelerate.
Will Gate.io’s 20% fee-burn mechanism outpace sell pressure from the August unlock? Monitor GT’s exchange reserves and staking participation post-unlock.