Yesterday, Bitcoin breached $30k for the first time in a long time and that was naturally met with some level of optimism. Most of the excitement wasn't as a result of the actual value but more so about what it could represent and I wonder how this would affect the prices of Splinterlands monsters.
Ever since the highs of the launch of SPS token, the price of Splinterlands monsters have plummeted quite dramatically. Perhaps, on one hand I have to take things into perspective and just appreciate the seismic growth we have experienced in the SPlinterlands market as well.
Prior to the launch of SPS token, monsters weren't actually trading at the somewhat exorbitant prices we have today. Back then, a normal foiled legendary monster could cost somewhere around $20 like we see with Chaos Legion monsters of today.
Today, we see some legendary monsters cost upwards of $500 and that on its own is pretty incredible. However, it is hard to drink cheap wine after you've tasted the good stuff and that's what brought us here.
The general crypto market is still in a pretty bad state and Bitcoin pumping to $30k doesn't necessarily mean much in the grand scheme of things. Yes, it is a nice old pump but even in that context, a decent chunk of Bitcoin with investors could still be in the red zone.
When the crypto market started bleeding, Splinterlands assets followed suit and saw their value plummet with the market. It was a very frustrating couple of months that has gotten us to this position we are in today.
The drop in the price of SPS, in particular, was a bad omen for the Splinterlands market and just as expected, the NFT market followed suit. Most assets that were affiliated with SPS saw their values dramatically dropping in the secondary market while those that are bought with SPS token in the game experienced sharp decline in demand.
Assets like Rift Watchers gems, validator nodes and the likes that were bought with SPS token in-game experienced sudden drops in demand due to the market's influence on SPS token. The knock-on effect was that the "product" of these assets also plummeted in the process.
So, monsters in Rift Watcher gems, for example, saw their demand drop and invariably saw their prices dropping, according to Peakmonsters data. Even until now, most of these monsters haven't recovered because of the market price of SPS leading to a sharp decline in purchasing power of the said token.
Even until now, Rift Watcher Gems monsters haven't recovered from the decline in demand and despite their relatively low number in circulation, they're still quite cheap. So, it is safe to say that if a bull run comes around and SPS pumps significantly, we will most likely see a rise in the price of certain Splinterlands monsters.
