Staking of NFT related coin $GMT, Green Metaverse Token, has been launched on Bybit and is running until May 9th 2022.
During those days you earn the equivalent of 99% APY. So ten days of staking at that annual percentage yield would be result in earning 2.7% returns.
The value of your GMT could rise or fall in that time period – although with flexible staking on Bybit you are able to unstake at any time to sell your tokens if you wish. Is staking worthwhile though? It depends on the crypto asset.
Staking Risks
Bybit frequently hosts short-term staking events that last about two weeks, offering high returns that can reach up to 999%. However, the highest yields often indicate a higher risk of a price drop, so it’s important to be careful. Recently, Lumerin (LMR) started trading on Bybit at $0.48 in late March, but by April 4th, it had dropped to $0.19, and then LMR staking at 999% APY was introduced.
Many investors jumped on the 60% dip to benefit from two weeks of 999% APY, translating to around 38% returns in additional LMR tokens. As long as the price didn’t drop significantly more, they would make a profit—there was also a chance the LMR price could rebound after such a sharp crash in a brief time.
However after a brief relief rally to $0.24 the price of LMR continued its bearish trend to $0.11 by the end of the staking period. That 62% drop was not enough to breakeven after the yield. For those that held after the staking duration, it hit a new low of $0.07.
Bybit usually set a low maximum amount that can be staked however. In the case of LMR, only 1000 LMR per person could be staked – around $190 worth. So those that were only staking would not have been overly affected by the LMR dump.
The approximately $100 loss could have been avoided though by not trying to ‘knife catch’ a bearish chart, and instead looking for assets in a bullish uptrend to stake.
NFT Staking Projects
Usually NFT staking refers to locking up non-fungible token assets, to receive staking rewards. Bybit have an educational article explaining the meaning of that on their blog.
For those that don’t own NFTs however, there’s NFT coins – cryptos related to NFT projects or with some utility in the metaverse.
NFT staking (or coins related to NFTs) on Bybit
NFTs have been outperforming crypto in terms of ROI, with many blue chip NFT collections like the Bored Apes and Mutant Apes setting new all time highs in 2022, whereas Bitcoin and Ethereum are yet to do so since the correction that began in November 2021.
Even some brand-new NFTs to launch in Q1 2022 have achieved high floor prices and market caps in a very short space of time, pumping more than most crypto coins – for example Azuki NFTs and Moonbirds NFTs. Moonbirds can be ‘nested’ for staking rewards.
In a similar way, NFT coins have been outperforming most of the crypto market. ApeCoin (APE) and Green Metaverse Token (GMT) are two examples, pumping even on days when BTC and ETH are down.
Stake GMT
GMT can be staked on Bybit, alongside another coin with a use case related to NFTs, Legion Network (LGX). Interest can be earned on ApeCoin on Nexo although that promotion is ending soon.
Unlike LMR, the GMT and LGX price charts are not showing bearish price action (PA). They may be a good investment as well as offering a high yield.
We also went into some fundamental analysis (FA) behind the new move to earn craze which GMT relates to. Users of the STEPN app can earn GMT coins by jogging or running if they own a virtual sneaker NFT, listed by STEPN on Magic Eden NFT marketplace.
That novel utility has seen GMT go on an explosive bull run similar to the performance of the governance token of play to earn game Axie Infinity (AXS) in 2021.
We also made a GMT price prediction based on its low marketcap and venture capital investors such as Alameda Research. The price of GMT set a new all time high since then.
GMT launched on Bybit at $2 and lower on Binance. Since then it hit $4.18. LGX launched on Bybit at $0.07 and hit $0.74 after day one FOMO, before trading sideways in the $0.14 – $0.18 range.
GMT staking ends in 10 days and LGX staking ends in 4 days.
Staking NFT coin GMT could be a particularly good deal as the GMT price is likely to go up in 2022 as more users sign up to use the STEPN app.
For those that prefer low risk stablecoin staking, Bybit supports TerraUSD staking at 15% APY, which used to be 20%, then 18%, and now 15%. That is a high yield though for staking on a centralized exchange platform with a good reputation like Bybit. It’s also less complicated to stake coins on an exchange than to use Anchor Protocol to stake UST or use decentralized applications (dApps).
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