What to Know:
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Gate Layer runs on the OP Stack, fully Ethereum compatible, using GateChain as the settlement layer.
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GT is now the exclusive gas token with a dual burn model; over 60% of supply already burned.
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Despite launch news, GT trades at $16.10 amid unlock and airdrop pressures.
Gate is officially launching its own Layer 2 blockchain network, calling it Gate Layer. The platform also released an update to the GateToken (GT) tokenomics when it launched. The goal was to make the ecosystem stronger and give GT holders more ways to use their tokens.
Gate Layer is built on the OP Stack and works perfectly with Ethereum. It is meant to make things more scalable, lower transaction costs, and give developers and traders a better experience. Gate Layer will use GateChain, the exchange’s current blockchain, as its settlement layer. This will make the system more stable and efficient. GT is the most important part of this upgrade. It will now be the only gas token that can be used for transactions on Gate Layer.
What Makes This Launch Important
Gate Layer is more than just another blockchain project. Gate is one of many platforms that are building on the OP Stack, which is an open-source framework that is also the backbone of big networks like Optimism and Base. This means developers can easily bring their existing Ethereum apps onto Gate Layer with minimal adjustments.
In addition, GateLayer ties directly into the Gate ecosystem, which already serves millions of users worldwide. This gives the new network an instant user base and a clear advantage over other new blockchains that have to build their communities from scratch.
GT Tokenomics Upgrade
Alongside the new Layer 2, Gate announced an upgrade to GT’s economic model. GT already had a dual deflationary system with both scheduled buyback-and-burn events and on-chain burning.
Gate has burned more than 60% of GT’s total supply so far, which means that the token has one of the highest burn ratios of any exchange token. GT could keep its value over time because there isn’t much of it and it has to be used in a new way.
Market Performance
Even though there was big news, GT’s price has been falling. At the time of writing, GT is worth $16.17. It dropped 1.25% to $16.10 in the last 24 hours, which is worse than the overall crypto market, which dropped 1.51%. In fact, CryptoMoonPress reported earlier how altcoin inflows are slowing down.
The main reason for this drop could be the upcoming Token Unlock. On September 26, a large amount of GT worth $110 million will be unlocked. Investors often sell before unlock events because they are afraid of dilution. As a result of Airdrop Pressure, Gate has started several HODLer airdrops that need GT holdings. These campaigns do increase demand in the short term, but many people who get airdropped tokens sell them right away, which puts pressure on GT’s price.
What’s Next for Gate Layer and GT
The launch of Gate Layer puts GT in a stronger position long term, even if the short-term price outlook looks shaky. Gate has made GT the only gas token, which means that it will always be in demand in its growing ecosystem.
But whether this will lead to a price rise depends on how the next token unlock and the mood of the market go. If Gate can handle the pressure to sell and keep getting more people to use Gate Layer, GT may start to go up again.
For now, investors are keeping a close eye on GT to see if it can keep its $16.16 support in the next few days. If this level can hold up and there is good news about Gate Layer adoption, it could be the start of a recovery.
Conclusion
Gate’s launch of its Layer 2 network is a big part of its long-term plan. It combines the OP Stack’s technical benefits with the community and liquidity that come with being one of the best exchanges in the world.
GT’s price is having trouble in the short term because of technical problems, upcoming unlocks, and selling related to airdrops. However, in the bigger picture, the token has strong utility, a proven burn mechanism, and is now a key part of powering a new blockchain.
Also Read: Altcoins Are Slowing Down-Is A New Bitcoin Boom Imminent?
