Hey everyone,
We are experiencing something historic today: The Hive price has risen to over $1 for the very first time (Update: It has actually been the second time. Thx to 
Yesterday the Hive price was $0.70 and nobody expected such a price increase. When I checked the current rate today, I couldn't believe my eyes: Wow, over a dollar. At some point the price had reached almost $1.50, twice as much as yesterday. I can't say what caused this sudden increase of more than 50% in less than an hour (!). Of course, the number of Splinterlands players is increasing drastically and a large part of them will also buy Hive to be able to exchange it for DEC. That would explain a steady increase, but not such a drastic one. Another explanation would be that a single person triggered this change: For example, because one person (or a group of several people) wanted to buy a very, very large amount of Hive at once.
But that doesn't seem realistic either. Perhaps it explains at least a part of the movement: within 15 minutes the price climbed from $0.70 to over $0.80. Such an effect can still be caused by individual buyers. When this price was reached many order purchases could have been triggered, which then catapulted the price further up. Of course these are just my assumptions, I don't know what exactly happened. If someone knows more details, I would be very happy to receive a corresponding comment.
Let's compare the increase with the one of SPS. SPS is the governance token of Splinterlands. Splinterlands is a blockchain game that runs on the Hive blockchain. In the game you fight with your monsters (which you own in the form of cards) and try to get up to a higher league by playing. If you haven't heard about it, you should definitely check it out here.
Anyways, SPS has also seen a significant increase in value over the past few weeks. Here, in contrast to Hive, the reason is pretty obvious: By staking SPS you can get advantages, such as the right to buy packs in the presale. This created strong incentives to stake SPS and this reduced liquidity. At the same time, demand increased, which led to an increase in the price. The SPS price rose by around 100%, which is very impressive.
However, this is a steady increase over several weeks. That's the big difference to the current Hive developments. As SPS grew steadily, the Hive course experienced a veritable explosion, causing the price to skyrocket. It is therefore really exciting to see how the price will change in the future.
Even if many Hive believers will go completely crazy now, we should stay realistic. It remains to be seen whether such a rapid price increase can be sustained in the long term. Of course there are advantages and disadvantages to such a price movement. Sure, one of the advantages is that potential buyers are attracted, because if a cryptocurrency is gaining so much in a short time, it could be worth investing, right? Some investors will wait and take a look at the price development for the next few days, but Hive will definitely get more attention. On the other hand such a sudden increase can cause that many people will also sell their Hive. A big advantage is that a lot of Hive is staked in the form of Hive Power that can't be selled immediately. Nevertheless, some people will probably sell in the next hours which could correct the price (down movement) a bit.
When a crypto price changes so suddenly, it is always difficult to evaluate. How the price will develop depends very much on how Hive performs in the next few days and how investors react to this movement. For example, if a whale with a large amount of liquid Hive decides to sell at this price, the price could collapse again. Overall, however, I have the feeling that the Hive community absolutely believes in Hive and sees this increase more as a confirmation that they should hodl their Hive. I still think that the price could go down a bit and if the "critical" limit of $1 is undercut, sales could quickly intensify.
I think the price will stabilize at a little below $1 in the next few days, which is not necessarily a bad thing. Because at this price, some new investors are likely to join. So in the long term we have interesting times ahead of us.
This is not financial advice. Crypto prices are very volatile and difficult to estimate. Invest at your own risk.
Now I'm asking you: How will the price develop in the next week? Of course there is also something to be won: The person who's guess is closest to the actual price wins 1 Hive.
Participating is very easy: Just comment what you think the Hive price will be in exactly 7 days (13/10/2021 22 p.m. GMT). That's it, you're in the competition that easily. Entering will be possible for two days, so every comment with a price prediction until 08/10/2021 22 p.m. GMT will be valid.
That's it for today. I'm curious about your opinion on the price increase: What's your feeling about it? What do you think the price will be in the long term? What started the movement? Let me know in the comments.
Thanks for reading.
Cheers ✌
