The drama and losses in exchange FTX is trickling down to many other crypto projects including Hive.
There is no signs of slowing down with the drop as even bitcoin is hitting new lows for the year just slightly over $16k.
Splinterlands is not immune to this as both SPS and DEC have fallen in price. Yet what has not fallen as quickly is the core assets of the game, its NFTs!
My overall Splinterlands NFT collection remains nearly where it was price value since last week. In addition more than 90% of all my rentals remain rented out earning me the same daily DEC income as last week and weeks before.
I am going to make some educated guesses as to why right now is a great time to be investing more into Splinterlands.
Best NFTs In Crypto
I have a small investment in another crypto blockchain that focuses mostly on NFTs and games. It is the Wax blochchain and unfortunately I have not seen a single game on the platform that has held up in value in both in game token/s or its gaming NFTs. Today its native token WAX tumbled even more than Hive itself making majority of the games' assets drop further in value.
Even though Splinterlands is facing similar draw down in its in game tokens SPS and DEC the demand and value of its NFTs have remain reasonable the same. This aspect of the assets holding up is ideal to be long in its NFTs.
Simply put the game's assets are not free falling in value the same way as the in game tokens because the demand and diamond hands on the cards remain high. This is not so much the same as many other current crypto games with their own NFTs.
Not All Good
I won't paint current situation in Splinterlands as rainbow and sunshine even though NFT prices have not fallen. The reality is there is still potential for its assets to free fall. A dramatic drop in NFTs' price could happen and its likely due to the lack of liquidity in the markets.
Just look at FTT as another example of what lack of liquidity can do to a coin. There is fear surrounding the solvency of FTX exchange and the demand for the token is lackluster relative to its full amount of tokens printed. All in all its a too much supply and lack of demand that is causing FTT to be crashing.
There is still the potential that Splinterlands NFTs could fall dramatically in price if some who wish to sell their cards but are unable to and are forced to drop prices to make a sale. The swift drop in prices shows a sign of lacking liquidity in the markets.
Recommendation right now is to sit tight for those who are invested in Splinterlands NFTs. Rather sell is if we have enough liquidity we should continue to buy at the right prices. The longer we hold the more likely we can weather through this turbulent crypto bear market.
Conclusions
Many Splinterlands veterans have experienced Splinterlands draw down such as that of 2018. For almost a couple of years Splinterlands remain pretty steady in prices even though they were near a low. When a crypto bull run began so did the prices of Splinterlands' assets.
We will have another crypto bull run, but until then will you seize the opportunity to grow your collection and earn more assets or simply sell out and watch what likely will be another rise in Splinterlands asset prices? Nothing is certain, but there is proof that Splinterlands have been able to weather through the bear markets and thrived in bull markets. There will be another crypto bull run so why not invest in assets that have best chances to rise?
Until next time thanks for reading!!!
I have plenty of other cards for rent! Just go on peakmonsters and check out the market place and if you are curious what I offer here is a link:
If You have yet to take part in playing this great game called Splinterlands please click on my referral link. It is free but in order to earn real assets such as cards and token you would have to invest in a starter deck or purchase game cards. Join the discord to learn more. Good luck!
THANKS FOR READING! CONTINUE TO PLAY SPLINTERLANDS!