Splintershards:
The governance token of Splinterlands has not been in its best shape lately. We've come down from as high as $1,00. The question is, could we go back there? I think we can and i'll tell u why.
Reason #1 Riftwatchers:
The Riftwatcher sales will have a positive effect on the price of SPS. U can only buy Riftwatcher packs with SPS and a voucher. 100 % of the SPS that is used for Riftwatcher packs will be locked up in the DAO. The vouchers will be burned.
Depending on the price of SPS there will be a big number of SPS taken off the market. At current prices $0.07, you will need 71 SPS to buy 1 pack for $5,00
71 X 5,000,000 packs = 355,000,000 SPS That will be locked up in the DAO. This number will vary due to the price movement of SPS, and any bonus packs given for large purchases.
Let's say 3M SPS leaves the market. That is 33% of the current total supply! We don't know how fast Riftwacthers will sell out, but it remains a big chunk of SPS that will leave the market. This will have a positive effect on the price of SPS.
Reason #2 GLX Airdrop:
I already talked about this in a post so you will maybe already know, that I am very happy about this announcement. The GLX airdrop will reward Splinterlands players and stakeholders for staking SPS and will increase its APR for doing so. This mechanic will incentivise players or investors to stake SPS instead of selling it on the market. This could go hand in hand with the Riftwatcher sales, because of the increased demand and reduced supply.
We don't know how much of an impact this is going to have, but I think it wil be significant. It could also attract attention from investors outside of Splinterlands. This could potentially create a positive cycle like we have seen happening to dec, with the SPS airdrop.
Reason #3 Staking requirements for earning in the game:
I think many people are forgetting the fact that staking requirements are coming to Splinterlands. It may be here in a couple of months. The team said it could be 2 months before staking is required. That could be delayed ofcourse, but the end of the year could be a time that they will implement it into the game. Then all of a sudden the Splinterlands players need SPS staked to earn rewards in the game. Yes for earning chests and SPS you will need staked SPS on your account.
They have also mentioned that we will be able to stake SPS on other accounts, so that may save some players, but I think everyone should pack their bags, before it's too late.
Conclusion:
There are alot of positive factors coming to SPS and Splinterlands;
- Riftwatchers will reduce supply of SPS
- GLX airdrop will create demand for SPS and may reduce supply of liquid SPS on the market due to staking rewards.
- The staking requirements for the game will continiously create utility for SPS in the future.
That's it for today, I hope u enjoyed reading my post. Do you agree with me? And how high do you think SPS can go in the coming months/year? Let me know in the comments.