DEC Market Cap

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The DEC price has been a on wild ride in 2021 and 2022. Going from 0.001 to 0.01 and more! A 10x increase.
Meanwhile the supply has also been changing a lot. From 500M at the start of 2021, to more than 3B now.

What puts these two numbers in one place is the market cap. I have been doing DEC stats, but never about the market cap.

Here is the chart for the period 2021 - 2022.

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Quite the ride :)

DEC market cap was under 1M dollars at the beginning of 2021. Then starting from August 2021 it started to grow and reached 20M at one point in December 2021.

In the recent months the DEC market cap has stabilized around 2M

DEC market cap is important because with the latest changes, Splinterlands want to make it a product backed stablecoin. Its backed by the ability to buy in game card packs at fixed ratio.
The value of the product is around 100M, the market cap of all the SL cards in circulation.
On the upper side DEC is limited by the market cap of the SPS token, that at the moment is around 40M.

So there you go, a 2M market cap for a stable coin backed by 100M on the down side and 40M on the upper side.
Have in mind these numbers can change fast.

This chart will be a regular addition going forward for the DEC posts.

https://peakd.com/hive-13323/@dalz/how-is-the-dec-token-doing-under-these-market-conditions

dec sps spt splinterlands marketcap data leo pob
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16 comments
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It is really awesome to see such progress occur with Dec and I believe there's still more to it.

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Great work Dalz!!! Thanks for keeping us abreast of the splinterlands tokenomics!

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Splinterlands token economy is as complex as rocket science. But I started to figure it out with the help of knowledge like this post.

Posted Using LeoFinance Beta

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Probably gonna be super hard to maintain a peg with these wild supply fluctuations. Gonna keep a close eye on this situation.

Posted Using LeoFinance Beta

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Believe dec will make it back to is Peg but I don't how splinterlands will be able to manage this economy rightly

Posted Using LeoFinance Beta

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We may see those high DEC numbers again, just need several thousand new players coming in.

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So there you go, a 2M market cap for a stable coin backed by 100M on the down side and 40M on the upper side

This statement is correct and factual, but I don't know what to make of this! This is positively strange. What are your thoughts on this?

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(Edited)

What are your thoughts on this?

Well for the 100M on the down side I think there is actually two parts in it.

  • First is the direct arbitrage opportunity that is available for buying packs. But all the packs for sales are not 100M. On the other hand there will be new addition added slowly. We might look at this as sort of the gold standard for the dollar back in the past when dollar was redeemable in gold
  • Second is the use cases for DEC and the utility that is giving to it, as a medium for exchange for buying and renting cards and assets on the secondary market. This is almost the case for every national currency today, as their only use is as a medium for exchange for goods in the country/economy the serve in.

Its a combination of the two. Instant arbitraged opportunity available as DEC is convertible to packs, and and in game medium of exchange.

As the game grow so should the DEC stability. I hope it achieves better stability going forward, even if its slightly bellow the peg. A fluctuation in price in the 10% to 20% in the long term would be great.

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