Just like the world of cryptocurrency, the tentacles of Hive appear to be expanding. This is something that will pay off in a major way going forward.
For a platform that started as a place for bloggers, the ecosystem is really developing. We are seeing the entry into many new areas.
Ultimately, the success of Hive will come down to how well the games and applications do. This is what is being built at the moment. As those entities achieve greater success, we will see this filter through to all layers.
This is how the feeder system of Hive can take it to incredible levels.
Splinterlands is one of the top blockchain games. In a few years, it has jumped to the head of the class. When looking at most gaming metrics, Splinterlands ranks in the top 3. We saw last summer how big a feeder system this can be. There were more than 10K account created each day.
As we discussed in a recent article, How Much Is A Hive Account Worth, over time we are seeing more games and applications created. Thus, having a Hive account has value since it opens one up to many more possibilities.
In an era of bots, it is hard to tell what percentage of accounts are real people. However, when looking at the numbers, we can see that Splinterlands has hundreds of thousands of players each day.
This from Peakmonsters:
We are seeing roughly 400,000 accounts engaging each day. This means that most of them are interacting with the blockchain, even if it is via Custom JSON. Of course, to do that, a bit of HP is required in each account.
There is little doubt the size of the gaming market. For that reason, we can stick to this genre and see what else is brewing.
Psyberx is another game with potential. It basically a shooter game that is being tied to blockchain. Fortunately for our discussion, that blockchain is Hive. The team released its White Paper in a recent post.
Contained in there is something that we should highlight.
Again, we see the potential for the numbers game to be played. If this takes off, is it possible they could have hundreds of thousands of players? That certainly is not too far-fetched. Each player requires a Hive account to engage with the LVL token. In reading the rest of the White Paper, we see how the token is going to be incorporated.
It appears token utilization is going to be high for this game. The LVL token is going to be interwoven throughout. Of course, the last line shows how Hive is involved. They are using the blockchain as a database for the transactions. It is something that we excel at. With all the work on scaling that was done, we can easily handle millions of more transactions each day.
This is a question many have pondered?
From a feeder system standpoint, will it be Psyberx? Ragnarok? Leofinance? Listnerds? SpkNetwork?
Will it be something we are not even discussing at the moment? Or will it be a combination of them all?
We can see that the number of accounts transacting on a daily basis is on a slow upward climb. This is nothing earth-shattering but it does show progress. Naturally, it does NOT included the Custom JSON transactions from SPlinterlands (or any other application). In other words, this is the foundation we are working from.
Here is the new account creation chart. We are now settled in around 400 per day.
The reality is that it does not matter where the accounts come from. In fact, we could see a major driver of account creation being done by HBD and the savings program. There is a 12% APR at present. It is not an outlandish expectation that will increase at some point. If Hive is serious about developing a fixed income market, it has the ability to offer aggressive returns without any 3rd party risk.
Ultimately we are going to see all of the development act as a feeder system to Hive. Just like a highway, there are lots of on-ramps. Some are more heavily used than others. With Hive, some games or applications will generate a large number of users, while others will be very small.
However, when we look at things in totality, it all adds up.
Hive is flying under the radar, much to the dismay of many. However, when you think about it, this is actually an advantage.
There is a lot taking place within cryptocurrency. At the moment, we see a lot of uncertainty. Obviously, different projects are being targeted by regulators and governments. It is not good to be in the crosshairs.
For this reason, Hive can sit in the background and adapt. We are continually working on greater decentralization and distribution. Wealth is growing yet it is being spread out among the different layers. People have the opportunity to fortify their position, compounding their holdings over time.
We also see development taking place which is further expanding the offerings tied to Hive. This is only growing which means the "menu" is larger. Someone who joins today has a lot more choices than a year ago.
In other words, the value of that Hive account is growing. The access it provides is greater than in the past.
Sometimes when dealing with technology, slow and steady is the best approach. Everyone wants the mooning, mostly from the token perspective. Nevertheless, we saw how chains got overwhelmed with activity, causing problems. Solid infrastructure is required for long term success. It is not the only driver yet it is something that will end up paying dividends.
Web 3.0 is still in its infancy. One of the tenets of that is how a single account allows for access to anything tied to that blockchain. With Hive, we see this growing.
At the same time, all that is being offered operates as a feeder system into the larger ecosystem. While it is to each game or application's benefit to add more users, this, in turn, fills up the ranks on Hive. Whatever success is achieved at the second layer is going to filter down to the base.
This is where Hive is set to thrive. The technology is only being improved, with another hard fork coming up soon. At the same time, developers are working on the second layer, updating and improving their offerings.
All of this is what will equate to growth for Hive. Once people understand how the HIVE token is tied to the interaction with the blockchain, they will start to load up. Simply put, the demand is built in to the success of the system.
And all signs are pointing to more users in the future. It becomes only a matter of when, not if.
With an expanding feeder system, the Hive's numbers cannot help but to get bigger.
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