Will DEC hit 0.015 USD again in 2022?
DEC, stands for Dark Energy Crystals, is the in-game currency token for Splinterlands, one of the best play-to-earn games currently.
At the time of writing this article, the market price of DEC is approximately 0.0029 USD. It has seen a sharp drop from its high of 0.0165 on October 15, 2021. But we should not forget that, not so long ago, DEC traded at 0.000489 (March 02, 2021).
How DEC token is created
The primary means of distributing Dark Energy Crystals is through in-game rewards to win. Splinterlands players earn DEC every time they win a Ranked Battle.
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About 1 million Dark Energy Crystals are created daily to distribute among the winners of ranked battles. However, this value may vary based on the current market value of DEC.
When the value of DEC drops below the target value of 1000 DEC = 1 USD the reward pool is automatically reduced. On the other hand, when the value of DEC rises above the intended value of 1000 DEC = $1, the reward pool is automatically increased. In this way, the amount of DEC in circulation increases to cause its value to fall in the market.
For example, for the current value of DEC (333 DEC = $1), the reward pool must be a lot bigger (3X). Currently, about 3 million DEC can be earned by players daily.
How DEC token is destroyed
In its Whitepaper, DEC contemplates ways to reduce its amount in circulation. The correct term is to burn DEC.
From time to time, Splinterlands releases card mini-editions that can only be acquired using Dark Energy Crystals. Instead of counting toward Splinterlands revenue, these DEC are burned from the supply.
Furthermore, members of Guilds must continually contribute Dark Energy Crystals to their Guild Halls and Arenas to level it up, earning greater bonuses and play-to-earn rewards. These DEC are burned from the total supply.
All Dark Energy Crystals spent on Potions, which increase rarity drop chances when opening Booster Packs or the number of Loot Chests received with completion of a Daily Quest, is burned from the supply.
The SPS Airdrops
In July 2021 Splinterlands released its new cryptocurrency governance token, Splintershards (SPS). According to its Whitepaper, it will be integrated into the Splinterlands game in order to provide increasing levels of decision-making ability and control over the product to the player-base, asset owners, and other stakeholders.
Splinterlands asset holders, including Dark Energy Crystals holders, are receiving free SPS daily from an airdrop. DEC's price has been terribly volatile since these airdrops began. As the chart shows, we can see that until July 2021 DEC's price was very stable rounding that desired target of 0.0001 USD.
So, how will the DEC price evolve?
To honestly answer the question posed in the title of this article, "Will DEC hit 0.015 USD again in 2022", I have to, first of all, reveal to you that I am just a newbie to Splinterlands. This is just an opinion based on a superficial analysis of the Splinterlands ecosystem and the economic environment we live in today.
In my opinion, if those responsible for Splinterlands don't release something very special, something that makes players want to keep DECs in their portfolios, the price will slowly drop until, as the last day of the airdrop approaches, it could be very close to 0.0001 USD. That is, light-years from the peak of October 2021 when it reached 0.015 USD.
And honestly, I don't think anything will be done about that. From what we can see, the idea is to keep the DEC more stable and point the SPS to reach the moon.
However, this doesn't mean that the DEC can't go up a lot in the short term. As we receive free SPS in airdrops for holding DECs, if the SPS price goes up, the DEC will follow that trend. There is and will continue to be, a positive correlation between the two cryptocurrencies. That link will gradually fade away until the fateful day of July 27, 2022.
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References
DEC Supply (Splinterlands Docs)
The Splintershards (SPS) Whitepaper