Punks for sale, DEC recovery and Bitcoin gains
I minted a couple of Hive punks when they came out and I've just been holding. I decided to put a couple of them on the market, but I've not gotten any takers.
Premium jpegs and all this pixelated stuff are still very new to me. In fact, I thought they were pointless but alas, here I am owning them.
I don't actually know what the future holds for these NFTs but I frankly hope that it will be something good. I reckon that in the near future, there will be some form of investment surrounding NFTs like Hive punk that will make it attractive to hold them.
When I think about projects like Mancave Bro, Dhedge, and Cublife, I can't help but rationalise an NFT approach to that same thing. Creating a non fungible dividend-paying investment for people's portfolios is a nice way to use NFTs to create value.
DEC recovery
Speaking of NFTs, we still have DEC tokens trading at prices that are far below the previous highs. We're trading at levels that haven't been seen in months and that's kind of scary.
The price of DEC has gotten so low that I fear we might never get back to previous highs. It is an unfortunate situation but I have decided to make the most of the situation through simple conversions.
As we draw closer to the end of this round of sales, I feel the Chaos Legion general sale excitement building. I think this is going to be huge for the Splinterlands ecosystem but I wonder how this will influence the price of tokens in the game.
There's a lot of pressure to sell tokens that we'll swap for credits in this round. I feel like this selling pressure is going to be heavier on DEC than it is on SPS tokens.
SPS tokens have governance use-case and then there's also the little matter of the riftwatcher pack that's coming soon to boost demand. If the rift watcher packs are awesome, we could actually see SPS tokens doing incredible numbers in the coming months.
The SPS boost could even be stronger if the general market recovers from this crappy situation we find ourselves in. So, while DEC continues to slide down, it could also mean that more people start looking towards it to boost their daily SPS airdrop.
The only problem I can see with this system is going to arise when SPS airdrop ends in 196 days. That's still quite some time in the future but there's nothing wrong with pondering over what may or may not happen.
A lot of fear in the air
I checked the numbers and it's not looking so good. There's a lot of fear in the air and it is mostly because of the price of assets.
Hive is trading at levels unseen in two months, Bitcoin is at $42k and Ethereum is below $4k. We've been trading sideways at this level for quite some time now.
A recent publication on Cointelegraph discussed the potential of this phase of the market leading to massive gains.
The publication discussed the potential of a short squeeze being on the cards. This was derived by using data from Bitcoin derivatives. As depicted by the publication
With open interest near all-time highs despite the downturn and sentiment clearly favoring further downside, a surprise uptick could have the impact of “squeezing” short positions and providing some relief for bulls.
Considering that the potential of short-term gains rising is a real possibility means that there could indeed be some respite for the general market as a whole. However, the level to which this will affect other assets is still unknown.
Als, while the hope for a potential Bitcoin Short squeeze exists, there's still nothing stopping the price from going in the wrong direction. In fact, all signs are pointing towards further dump in price.
However, many traders are pointing at the sharp bounce from the $39k region to be an indicator of some sort of hope for the market. Others aren't exactly thrilled by it and many are already prepared for a 'doomsday" scenario of Bitcoin dropping closer to $30k.
In any case, the fact is that price goes up and it goes down. As an ardent 'glass half full" believer, I see it that the fact we're referring to $35-40k as bearish is a positive indicator for things to come.
Perhaps I'm a little bit too optimistic but there's data to prove that I'm not crazy. At the end of the day, time will tell and answer all the questions we have.
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Very nice written post my dear @belemo !
This is exactly what happened ! Same thing happened on the stock market. I hope I am wrong but it seems it might be more of a breather in the current downturn than the beginning of a new bounce.
Time will tell but I like it very much !
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Although I am no financial expert, I think these lulls in the market should not be too concerning.
There is a lot of legislation happening in countries all over the world regarding the mining of crypto coins. I think this has a lot to do with the falling prices. Also the prices swelled so high that a lot of whales cashed out enough to drop the prices back down.
Once we start heading into spring the prices should start to go back, fingers crossed.
I put a couple of my Punks up for auction I'm going to have to check on those. Doesn't seem to be much excitement around them. I'm not seeing much excitement on AtomicHub either in the auctions. Might just be a lull in the NFT market in general.
Trading all of my DEC for cards at this point.