Recently I wrote a post "Have we seen the bottom in the SPS token?" Where I talked about positive SPS momentum based on the changes to the SPS fundamentals where SPS token has finally received a direct utility in the form of SPS staking required to earn rewards in the game. Technical momentum is still on our side with the SPS token. And things are looking up for the first time in a long while in the Splinterlands universe.
The Splinterlands universe is buzzing with excitement as the SPS token gains momentum and showcases the potential for significant growth. Recent developments and a modified token mechanic have positioned SPS as a prime candidate for a 100x increase in value. In this blog post, I will explore the elements that make the Splinterlands flywheel unique and examine the factors that could propel the SPS token to new heights.
Yesterday I saw an intriguing video by Stever82 called "The Next 100x Coin Backed By A Top Project" In this video Steve is making a case that: "Splinterlands a TOP DAPP for over 5 Years. They never stopped building. You Ignored SPS as it had no reason to go up. But the Flywheel is about to start. There is a lot of reasons that SPS hit the bottom and is up more than 25% and is just starting. 100x or more is possible" Beyond this short summary you should definitely watch this video as he is giving some really good reasons for SPS appreciation in the near future.
He is making a case that SPS has a token mechanic that made Iron Finance and LUNA token moon in the past, but SPS flywheel has a modified token mechanic that has been designed to fix the flaw that previous algorithmic stable coins had and is backed by one of the oldest play to earn games that has a loyal follower base that would help SPS avoid the fate of LUNA and Iron Finance.
As you can see from the chart above LUNA went from around $5 in June of 2021 to a peak of almost $120 in April of 2022 a 24x and from January 1st 2021 to its peak in April 2022 it went from 65 cents to $120 which is more than 180x. This kind of price dynamic is not out of the realm of a possibility for SPS as it is starting at under 2 cents compared to 65 cents for LUNA. A 56x for SPS would take it to it's all time high of $1.07
The Flywheel Effect: Harnessing the Power of Splinterlands:
Splinterlands is not just any gaming platform; it is one of the oldest and most successful play-to-earn games in the blockchain space. With a loyal and dedicated community, Splinterlands has built a solid foundation over the years. The flywheel effect is poised to kick in as SPS gains traction, drawing more players, investors, and enthusiasts into the ecosystem, creating a positive feedback loop that drives growth.
Demand from Players:
There will be demand for SPS from existing Splinterlands Players. For example I have 99,944 SPS staked and I am currently playing in the Champion 3 league. As you can see from the table below maximum rewards have 15.3 multiplier and even with almost 100k SPS staked I am only at the 7.6 multiplier. See the table below for a player with 100k SPS:
Green values indicate that rewards will be the same or better than when we didn't have SPS staking for rewards. As you can see I would need to double my SPS to 200k to earn the same rewards as I was earning prior to the change:
This will drive positive SPS market dynamics for the months to come as players buy and accumulate staked SPS.
Correcting the Flaws: Learning from Previous Experiences:
SPS's modified token mechanic addresses the flaws that plagued previous algorithmic stablecoins like Iron Finance and LUNA. By incorporating lessons learned from those experiences, Splinterlands has designed a system that aims to avoid the pitfalls and maintain stability. This improved token model instills confidence in the SPS token's long-term viability and sets the stage for its potential to soar.
The Role of Liquidity Pools: Maximizing Earning Potential:
Liquidity pools play a crucial role in the Splinterlands ecosystem, enabling investors to earn rewards without direct participation in the game. The Voucher - Hive liquidity pool, offering a remarkable 47% yield, stands out as a lucrative option. Additionally, the SPS-BNB and SPS-ETH pools, with yields of 47% and 40% respectively, provide opportunities for investors outside the Splinterlands and Hive ecosystems to tap into the potential of SPS.
Recognizing the Undervalued Gem: SPS Token's Market Cap:
At its current price of two cents, the SPS token is undeniably undervalued. With a total market cap of under ten million dollars, SPS possesses substantial room for growth. The maximum token supply of three billion, combined with the circulating supply of 489 million, emphasizes the scarcity factor. Considering the tiny fully diluted valuation of only 58 million dollars, the potential for a 100x increase would still result in a modest valuation compared to other projects in the market.
Comparing to Established Projects: Sandbox and Axie Infinity:
When evaluating the potential of the SPS token, it's important to consider the current market caps of established projects like Sandbox and Axie Infinity. Both projects have experienced significant corrections from their all-time highs, presenting an opportunity for SPS to catch up. With Sandbox's market cap at 788 million and Axie Infinity's at 678 million, even a fraction of their previous valuations would provide a substantial boost to the SPS token's price.
If we look back at 2021 we see that Axie was valued at about $30 billion around it's peak valuation. While it is hard to imagine right now that SPS with it's current valuation of under $10 million can reach $30 billion flywheel dynamics combined with another bull market in crypto can make anything possible. In the case of 10 million to 30 billion that would be a 3000x I would be very happy with a 1/30th of that which would be a 100x
Conclusion:
The Splinterlands ecosystem, combined with the modified token mechanic and the potential for high yields through liquidity pools, creates a fertile ground for the SPS token's exponential growth. The undervalued nature of SPS, with its relatively small market cap, offers a unique opportunity for investors seeking high potential returns. While no investment is without risk, the factors discussed in this blog post indicate that SPS could indeed be the next 100x altcoin. As always, it's crucial to conduct thorough research and make informed decisions when investing in the cryptocurrency market.
**Disclaimer: **Please note that all the statements above are solely my personal opinions and should not be considered as financial advice. However, if you are new to Splinterlands and interested in exploring the potential investment opportunities associated with this token, you can use the following link to begin your journey in the Splinterlands ecosystem. By using this referral link, you can join the Splinterlands community and embark on your own investment journey within the game. Remember to conduct your own research and make informed decisions that align with your individual financial goals and risk tolerance.