After years of revolving around the concept of centralisation, it seems that the world has finally come to terms with the idea of decentralisation. While decentralisation is not restricted to just cryptocurrencies, ways have been found to make the most out of the blockchain as a technology. In that context, while Play-to-Earn (P2E) is considered a familiar term, experts are believed to be supporting the Move-to-Earn (M2E) scenario to bring a different take for earning online rewards. “M2E is considered a new category of crypto assets. I believe this concept has familiarised the traits of blockchain to the larger audience by representing a real-world utility (sneakers, for instance) as a non-fungible token (NFT), and valuing the activity and trading on-chain,” a CoinSwitch spokesperson told FE TransformX.
The concept!
As the name suggests, M2E refers to the category of cryptocurrencies which provides rewards to users for getting involved with physical activities. From what it’s understood, this cryptocurrency category aims to promote the healthy take on lifestyles through promotion of activities such as running, exercising, dancing, among others. It’s believed that these cryptocurrencies are based on the amalgamation between a blockchain-backed rewarding structure and a fitness-tracking technology.
Data from a study published by the American Journal of Preventive Medicine showed that involvement in physical activities increased for around six months upon introduction of weekly financial rewards worth between $2-46. A separate study unveiled by JAMA Network Open, a medical journal, found that prizes worth 1/1,000 of a cent for every recorded step resulted in an upward trend in physical activities. Based on data from these studies, it can be concluded that the business model around M2E cryptocurrencies has potential to encourage regular participation in physical exercises. Going by market reports, certain M2E applications don’t require any fee for access, while others can need investing in NFTs. Upon moving, M2E users are able to earn online cryptocurrency or NFT rewards, which can either be converted into cash or be subjected to a secondary market to earn passive income.
“I think the business model around M2E cryptocurrencies revolves around creating an ecosystem where users are incentivised to stay physically active and engage in fitness challenges. These applications seem to use a dual-token system where one token is used for platform management and operations, while the other is rewarded to users based on their fitness achievements. Some applications may also require an initial investment, offer in-application purchases, or provide additional revenue streams through advertising or premium services. As Web3.0 is expected to be the next phase of Internet evolution, M2E cryptocurrencies have potential for integration into this decentralised environment,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, highlighted.
While development of a healthy lifestyle is held as the most important benefit of investing in M2E cryptocurrencies, market research has shown that other benefits are accessibility for everyone as it doesn’t require any heavy formalities, and provides assurance that users get rewarded without the presence of any third parties or hacking entities. However, the question which seems to be asked is how M2E is different from P2E? Well, the former is based on prizes from physical activities while the latter is based on gaming-based rewards. Moreover, M2E is effort-oriented and P2E is performance-oriented.
The outlook of the M2E cryptocurrency market!
As of October 16, 2023 (10.12 am, Indian Standard Time), CoinGecko, a cryptocurrency data aggregator, showed that the market capitalisation of the M2E market stands at approximately $300 million, which shows a 0.3% rise in the past 24 hours. The aggregator also stated the 24 hour trading capacity of the M2E market stood at close to $26 million. Reportedly, as things stand, the top five M2E tokens are STEPN (GMT) with a $0.146 value, Sweat Economy (SWEAT) with a $0.0098 value, Step App (FITFI) with a $0.004 value, STEPN Green Satoshi Token on Solana (GST-SOL) with a $0.0081 value, and Genopets (GENE) with a $0.174 value.
In terms of M2E-based earnings for 2022, CoinGecko stated that GMT was the highest-earning M2E token with players being able to earn $42.55 per day at its all-time high, while SWEAT clocked $0.46 per token during its initial phase of launch. Insights from CoinMarketCap, a crypto price-tracking website, has estimated that the M2E market will reach $1.8 billion by 2030. In 2021, Grand View Research, a market research firm, published that the market valuation of M2E fitness applications stood at $391.7 million which was more than what its current market capitalisation, suggesting the bear market’s implications on the landscape. Market research has shown that increase in cryptocurrency-oriented knowledge among investors will drive this market’s growth.
Furthermore, it is predicted that technological developments around smart contracts and wearable technology can enhance the return on investment (ROI) capabilities of M2E cryptocurrencies. Although, suggestions have been made on introduction of a regulatory environment to ensure progress of M2E cryptocurrencies. “As the world becomes aware of the importance of fitness and health, and as Web3.0 continues to develop, M2E cryptos are likely to become popular. It has the potential to become an integral part of the digital economy. In the future, we can expect to see more M2E applications and games emerge,” Minal Thukral, executive VP – growth and strategy, CoinDCX, a cryptocurrency exchange, concluded.
