The Gram matrix is a classical object formed from the pairwise inner products of a collection of vectors, with fundamental roles in functional analysis, statistics, combinatorics, and coding theory. In the realm of sequence design, maximum-length sequences (m-sequences) are among the most fundamental classes of sequences, traditionally characterized by their span, decimation, shift-and-add, balance, run, and ideal autocorrelation properties. In this paper, we bridge the two foundational concepts by uncovering novel structural features of m-sequences through the lens of a family of Gram matrices. Specifically, for each $1 \le t \le 2^n - 1$, we extract $n$ consecutive subsequences of length $t$ from an m-sequence of period $2^n - 1$, construct their corresponding $n \times n$ Gram matrix, and investigate its rank, denoted by $r_n(t)$. Utilizing semilinear representation of Galois groups and Bézoutian of polynomials, we derive an explicit formula for $r_n(t)$ for all $t$, thereby establishing the complete rank distribution of these Gram matrices. Notably, we prove that full rank is attained for approximately half of the admissible values of $t$. We further uncover the intricate dynamics of $r_n(t)$: rank-deficient states are strictly unstable (i.e., $r_n(t) < n$ implies $r_n(t+1) \ne r_n(t)$), whereas the full-rank state exhibits strong persistence, remaining at $n$ over a nontrivial interval of consecutive values of $t$. Altogether, our results fully characterize both the global rank distribution and the local dynamics of rank function, as invariant of m-sequences. As an application, our findings completely determine the hull distribution of the family of punctured cyclic simplex codes.