Is Splinterlands Going Parabolic?
Have you checked the value of your Splinterlands account recently??
If not, be in for a sticker shock at the supposed value of it. Card prices across the board are on the rise, but are most noticeable in the older sets. A glance of the the market cap shows a distinct lift on the overall value currently trapped within the game. While still small in many regards, what is clear is the parabolic shape that is beginning to take form in recent weeks.
One of the key reasons for this ultimately resides in the dual catalyst of new players being onboarded, but also in the ongoing reduction of supply for older cards. As noted in the chart below, supply destruction continues even now as card prices begin to find upward momentum. In the end, if one wanted out right away, burning remains the simplest meaning of gaining liquidity in a rushed exit.
That Bump in DEC prices!
To further expand upon this ongoing feedback loop is the fact that DEC is now on the rise again.
- This expands the demand for the game's cards and entices more people to play.
- It also encourages people to burn more cards.
Part of the catalyst for this has come in the form of new use-cases for DEC. While the introduction of Brawls are sure to bring about a new sink for DEC, the real culprit is likely to be the introduction of new DEC liquidity pools.
As of writing this, the DAI-DEC pool has $96.5K of liquidity and the DEC-ETH pair has $168.5k of liquidity. Yet both of these pale in comparison to the new heavyweight found in the DEC-BUSD liquidity pool where a whopping $322k of new liquidity exists. This one pool alone accounts for almost 164 million DEC that is currently being stored here. And let's also not forget about the new Tribaldex pool where nearly 44 million DEC is being swished around.
That's a lot of DEC being trapped... and when DEC goes up, so does the value of the game and all its assets. Game on!
Posted Using LeoFinance Beta