Focus on Splinterlands: Will the market affect blockchain gaming?

Splinterlands and many play to earn games have turned into legitimate sources of passive income.

For Splinterlands for example, there has also been the added advantage of massive interest in the game due to a variety of airdrops that have in turn pushed the price of assets up.

In Splinterlands, there are basically two distinct types of assets; NFT and NOT NFT. The NFT includes monsters, land, totems, and other in-game assets while the tokens are not NFT.

Both the related tokens and the NFTs have experienced wild pumps in the last three months.

Interestingly, these wild pumps have also coincided with the general crypto market's bull run. Assets like Ethereum, Bitcoin, and many others are attracting investors, invariably leading to spikes in their value.

Does it affect Splinterlands?

Perhaps it is just a coincidence or maybe it isn't but I often ask myself if the bull run that other cryptocurrencies experienced is reflected in the Splinterlands ecosystem.

On one hand, let's assume that the investors in Splinterlands are also invested in bitcoin, Ethereum, and the likes. It's safe to make this assumption because the crypto space is still one crowded corridor and Splinterlands attracts crypto people, rather than actual gamers.

So taking the assumption in the previous paragraph into consideration, is it possible that the wild ride in the Splinterlands ecosystem is due to the investors having some extra funds?

Unlike traditional crypto projects where values rise and fall in unison, NFT gaming doesn't quite work in the same way because from my personal research, I've found that the price of NFT assets are solely based on perception.

So this means that it's not likely that the bull market influenced the NFTs directly. However, what if they affected them indirectly through DEC?

From the launch of the SPS airdrop, the first asset to actually pump hard was DEC. This is because it's still the primary token of exchange in the game and is used for virtually everything in the game.

Here's the thing though, DEC is a token that's tradable on a couple of exchanges. So unlike NFTs, DEC is subject to market manipulations, speculations, and all that trading stuff that goes on every day.

One of my suspicions is that the price of DEC influenced the NFT market to go on that localized bull run.

My aforementioned suspicion kind of makes sense when you consider the fact that each NFT for example, has a floor DEC rate or burn rate. So this means that as the value of DEC rises against the dollar, the value of NFTs will invariably follow suit.

Assuming we put all these assumptions together and combine that with the fact that SPS is also another tradable token of immense value, then it's very likely that your Splinterlands assets will be affected by the direction of daddy Bitcoin and his children.

Splinterlands is unique

Splinterlands is a blockchain-based game built on hive and has attracted millions of players from around the world.

Yes players earn crypto and you need crypto to enter the game but what if all of that doesn't actually matter?

What I'm trying to say is that what if the growth and development of the game is all localized and the pump in assets is solely based on developments.

What if the fact that assets and tokens pumped with the general market is simply a coincidence and nothing more than a footnote to the real story?

Again, the entire crypto space is still small and it's highly likely that virtually everyone involved with Splinterlands is a crypto person.

The aforementioned assumption doesn't necessarily mean that crypto from outside influenced the price of assets within the game.

Looking at the trajectory Splinterlands has followed, it's not surprising to see how far the game has evolved over the years.

Also, if you include the hype and interest surrounding NFTs, which, on its own, isn't due to the general crypto market, then it's also very possible for Splinterlands rise to be due to its personal development.

So, in essence, I'm also saying that while it's possible for the general crypto market to affect the Splinterlands ecosystem, it is also possible that it does not.

It is highly probable that regardless of where the market goes when this current mega bubble bursts will not affect the game.

Panic selling though

So in any case, humans are still going to be human and we'll always do human stuff.

In the crypto industry, this includes panic selling. Assuming the bubble bursts because it always does, the value of hive, DEC, and some other tokens start dropping like rocks in the water, it's possible for people to panic sell.

This is just a given though because right now, most of the DEC is either locked in a liquidity pool or being held in-game to earn SPS tokens.

Another likely scenario and one that I'm sure everyone is aware of is that the value of everything just drops by the end of the sps airdrop.

It's a scary thought that messes with my sleep and a hellish scenario for me and other play to earn people.

This is a worst-case panic selling scenario that could happen if people don't find another use-case for the tokens and assets at their disposal.

In summary

The Splinterlands game and marketplace is unique. A number of factors influence the value of assets and mapping it out is not so easy.

Personally, I'm in the take-profit camp and so, I always try to hold a decent amount of stables.

Normally, I'd have reinvested all the stables I hold but right now, I'm at a crossroads and I need to fund my escape from the country. It's not what I want to do, it's what I have to do.

Finally, I have to stress that this is all speculative and my assumptions are only based on my perception, so should not be taken as fact.

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