GUN rises 19% in 24 hours. Why is this 3A game token getting popular?

Game token GUN(GUNZ) has surged over 18% in the past 24 hours, currently priced at $0.01, with a market capitalization of $21 million. Behind this rally are both project innovation support and market sentiment driving forces. However, investors need to rationally assess the true value and potential risks of this emerging gaming token beyond the short-term gains.

Price Performance: Significant Short-term Increase, Trading Volume Soaring

As of January 4th, GUN’s performance data are as follows:

More noteworthy is the medium-term performance. According to the latest data, GUN has increased by 23.59% over 7 days and 15.04% over 30 days. This indicates that this rally is not a one-day spike but a sustained upward trend over the past month. However, sharp fluctuations in trading volume also warrant caution—latest reports show an 813% week-over-week increase in 24-hour trading volume, a sign of extreme volatility often associated with high risks.

Project Fundamentals: Innovative NFT Conversion in Gaming

GUN is the official token of the GUNZ platform, with core use cases in in-game trading and asset conversion. GUNZ claims to be the first platform to enable in-game item conversion into tradable NFTs within AAA games.

Three Highlights of the Innovation Mechanism

Optional NFT Extraction Mechanism: Players can obtain loot “HEX” during battles, which can be successfully converted into NFTs for holding or trading. This process is entirely optional; players can choose to enjoy the game purely as a free-to-play experience without participating in any NFT transactions. This inclusive design theoretically lowers participation barriers and broadens the user base.

Multi-platform Game Support: GUN currently supports games like Gunzilla Games’ “Off The Grid” (available on PC, PS5, Xbox) and “Technocore.” The deployment across multiple games provides ongoing demand for the token and liquidity sources.

Cross-chain Ecosystem Expansion: GUN has been launched on the Solana chain and listed on major CEX Launchpools. Cross-chain deployment allows the token to benefit from Solana’s high speed and low costs, expanding liquidity channels.

Market Sentiment: Clear Bull-Bear Divergence

Recent market updates show a significant polarization among investors regarding GUN.

Supporters believe this is a reasonable rebound after accumulation at the bottom, with sufficient main chips, and that the upward trend is far from over. Skeptics point out technical risks such as MACD momentum waning and no-volume price surges, advising shorting at high points rather than chasing longs.

Community sentiment is about 90% positive, but such extreme optimism itself is a risk signal. In small-cap tokens, highly unified sentiment often leads to emotional traps.

Key Risk Indicators to Watch

Based on market data, GUN currently exhibits several technical signals warranting caution:

• RSI has entered overbought territory (reaching 83.3 at times), indicating rapid short-term gains
• Trading volume has shown a clear decline, forming a high-risk “no-volume price surge” pattern
• Retraced 5.3% from the high of 0.01497, indicating weakening upward momentum
• The project has been online for only about 9 months (launched on March 27, 2025), with limited historical data

Summary

GUN’s recent rally reflects both the market enthusiasm for gaming tokens and attention to blockchain gaming innovation. However, the 18.96% 24-hour increase and overbought technical indicators serve as a reminder that much of the optimism may already be priced in.

The key follow-up points are whether trading volume can stay high, if the price can hold above critical support levels, and whether actual user growth within the game can sustain the token’s long-term value. For those chasing the high, setting reasonable stop-loss points is crucial. This is not a “must-miss” opportunity but an investment decision requiring rational risk-reward assessment.