Yesterday I couldn't resist the temptation and powered up some more PAL. I also have been mining them at the rate of about 1 PAL per day with my 1 PALMM coin.
I have 37171 PAL right now. All staked.
The first rewards in PAL have started to come in and it feels nice.
Now when you look at price of PAL on Steem Engine, it might not look like much but it's wildly fluctuating. Right now it's 0.3202 STEEM or $0.131 USD for 1 PAL.
It's interesting to look at sell orders that other people have set up on the dex - 25, 150, 39, 52, 60, 530, 6, 94, 50, 4, 140, 80, 112, 211, 3 etc.
They range from 0.39959 to 0.45 STEEM per 1 PAL and gradually going upward.
These small amounts of PAL most likely are from post rewards people are starting to get or from the airdrop.
And then at the end of it all is a huge sell wall of 12619191 PAL at 1 STEEM level. It doesn't stop there. There are sell orders at 2, 5, 13.77, 70, 100, and even 200.
Looking at this wall I don't understand why people are selling PAL at today's prices. They literally want to have short-term profit. Yes, but at the expense of long-term loss.
Because this 12 million PAL sell wall means it was designed from the very beginning to reach 1 STEEM per PAL level gradually and maybe exceed it.
This means the wide and fairer distribution of PAL is quite inexpensive to achieve right now. Unlike STEEM in the early days with the ninja-mine and massive inflation rate.
If people are selling now, then when the orders reach this wall, they will regret it later.
And let's not forget another thing - PAL price is tied up to STEEM price. If STEEM goes down, the value of PAL goes down too. If STEEM goes up - PAL goes up as together.
When we were in the bear market STEEM price kept going downward but it has been steady around $0.40 USD for some time now.
What if we have entered the bull market? What if STEEM price keeps rising? What happens to PAL price then?
STEEM wave might raise PAL with it together.
It's all speculation, of course and only future will tell. But in my mind all the signs are here.
The only reason why PAL price might decrease would be if people lost interest in PAL and PalNet.
I don't see any signs of that right now.
Do you?