LONG TRADE OPEN
The recent price dump in $GUN appears to be driven by a combination of significant token supply concerns and persistent sector-wide headwinds. The most immediate catalyst is the upcoming token unlock on **February 28, 2026**, where approximately **87.58 million GUN tokens** (representing about **5.62% of the current circulating supply**) will be released, creating fear of potential selling pressure . This event is occurring against a broader backdrop where the crypto gaming sector has seen venture capital funding dry up, with many gaming tokens down 85%+ from their 2025 highs . While GUNZ's underlying fundamentals remain strong—with its AAA game "Off The Grid" processing millions of transactions and attracting real players—the market is currently focusing on the **massive total supply of 10 billion tokens**, of which only about **15.5% is currently circulating** . This supply overhang, combined with broader market risk aversion (Fear & Greed Index at "Fear"), is causing traders to exit positions ahead of potential dilution . The current price action suggests the market is pricing in these supply-side risks while waiting to see if GUNZ's impressive network activity (14 million wallets, 740M+ transactions) can eventually translate into sustained token demand .
