DEC and SPS Supply in Oct 2023
There is a lot of discussions among Splinterlands bulls that the in game risks of DEC and SPS will rise in price in the short term. Why would this happen and how can we predict when this may occur?
First looking at current amount of DEC in total we can reference splintercards.com chart. The results are a staggering 4.6 billion DEC supply. Then we have SPS:
A total of about 1.143 billion SPS in present existence with a cap at 3 billion.
When we see billions we think it’s a lot and quite frankly it is. Yet numbers are all relative isn’t it?
The reason behind the bullishness is that current in game sales are pulling in DEC which in turn is destroying the total amount of DEC. With the only way to create DEC is through burning of cards or SPS. Now more likely than not players will avoid burning cards since the value of the cards sell for a lot higher than DEC burn rate. Then it leads to only one other recourse and that is burn SPS for DEC.
Now SPS is capped and there can never be more created. Current steady distribution of SPS will only continue steadily but as time moves forward less and less of the SPS will be distributed. Furthermore players demand for DEC will entice players to burn what limited SPS they hold.
This is because in the near future land 1.5 which will require staking DEC will continue to draw down the current DEC supply. With less and less DEC and more and more demand for the token it only means higher in prices.
Indeed we are witnessing this as the price of DEC rose over the past week due to high demand for its use in buying Rebellion packs. The massive drawdown in DEC with the pack purchases have remain strong. Over the past couple days there has been more than 260k packs sold. The demand has led to further increase in prices do DEC.
For now SPS remains to rise in price as rapid as DEC. Yet again we remind ourselves supply of SPS is fix. While only ways to obtain more DEC into circulation is by burning either cards or SPS.
With close to 70mil SPS gone from burning for DEC it will only continue to increase as demand for DEC remains strong. With more SPS burned it will likely result in more value in the remaining SPS.
The future looks bright for both DEC and SPS. I certainly look forward what we will see coming from these tokens in the near term and or future.
Until next time thanks for reading!!!
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It looks like SPS and DEC might look quite good, but SPS might take quite a while longer than DEC to reach a good point. I will be burning some DEC later when my HBD withdrawal happens for the Rebellion pre-sale.
We are seeing that things are looking tough for us right now because the market is down as we will see the market start to go up then we will see the prices of all these things go up a lot. Thanks for sharing this great knowledge with us.