GateToken (GT) Price Prediction

By CMC AI
09 September 2025 02:55AM (UTC+0)

TLDR

GT’s price faces a tug-of-war between deflationary mechanics and market dynamics.

  1. Token burns & supply squeeze – 60% of GT supply burned since 2019, with $39M eliminated in Q2 2025 alone (Gate.io).

  2. August 26 unlock risk – 119M GT ($119M) entering circulation, representing 5.42% of market cap (Indodax).

  3. Exchange growth vs competition – Gate.io hit 34M users and 11% derivatives market share, but rivals like BGB surged 30% in August (CoinMarketCap).

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.

CMC AI can make mistakes. Not financial advice.