Thoughts on current state of Splinterlands Market
Everything is tanking on Splinterlands, DEC is almost back at its peg, SPS at all time lows, prices of cards are tanking, Plot of Lands, the worth of my deck has gone down to almost 89% of where it was last Nov-Dec. SL marketcap has dropped from $280million to around $174million.
Let me tell you a funny story I donāt think Iāve shared with anyone. At some point during the 2021 Oct-Nov Splinterlands Bull market, I had to stop checking the worth of my deck because I believed it was too unreal lol, I stopped taking record at around $18k. It went up more from there.
It was funny to me because my major cards were the most expensive ones, selling them was going to ruin my gameplays and Iāve said this more than enough times, I actually do enjoy playing the game, so it was automatically unrealistic for me to consider the cards as profit.
Decision I still very much stand by even as my account sits at sub $4k today. Maybe this is why Iām able to cope well with this drastic dip in the price of the Splinterlands assets. If you see any Splinterlands investor out there, give them a hug, times are very rough.
When will the tanking end?
Interesting thing is, this tanking is barely over and thatās because I see it from the perspective of the amount of Packs that are left to go, there are 6.8 million packs to go, we can agree that half will find their way to the market and reduce the already reduced prices on the market as sellers try to out bid each other.
Hence Iām already anticipating another 25% dip in the value of my SL assets, and even up to 50% before the Packs run out.
However, it is quite economically irresponsible to watch this happen, this is why I applaud Belemoās decision to sell his cards in a partnership with SEED. Heās in a very dire situation and desperately needs those funds. Sweet thing is that he still gets to play with his deck.
This is something Iāll love to explore myself, I donāt mind paying everyday for a couple of years to pay back my loan and buy back my deck. Heck I could even pay back the loan with one of the cards if it moons inbetween two years.
As much as I claim to enjoy playing the game, my current deck value could go a long way in helping me to generate the funds Iām putting together for my migration plans if I put those funds to better use, E.g, HBD interest savings with 20% APR. I need a way to use my deck as collateral.
Everything is tanking but developments
Like Iāll always say, markets will market, the focus is on fundamentals and from where I see it, development is going strong and itās one of the most important factors that determines a project that still has some steam going for it.
According to the Splinterlands roadmap, quarter 2 is geared up for many updates and it seems itās going to be much more interesting than the first quarter. Things we are looking forward to seeing are
- SPS validators
- Modern and Wild formats gameplay
...to mention a few.
Meaning we might soon see a reversal in the price of SPS as the validators system brings in a new feature of utility for the SPS tokens. Marketing is also going strong as rumor has it that the latest partnership sign up is with a professional athlete. We will see how it goes.
Ultimately, Iām not bothered about the SLās assets market in the long term, the ecosystem needs to absorb the new packs, I expect to see real action start few months after packs have been sold out. How long that will take is unknown, what Iām concerned about is what to do in the short term.
What are your thoughts and plans?
Thanks for reading.
Posted Using LeoFinance Beta
