DEC is overvalued
Quick note on DEC: It's massively overvalued.
DEC is an inflationary asset, meant to be pegged to the dollar.
1000 DEC = $1
Right now 1000 DEC = $15
Which means its 15x the price it's supposed to be.
This is due to the ongoing SPS airdrop, because DEC adds to the airdrop points.
That's why everyone holds on to their DEC. When everyone's holding on, noone's selling and when noone is selling price is rising.
The problem is, that
- the airdrop will end in 286 days
- card prices go up relative to DEC
- people will use DEC to buy CL Packs
- people will take profits
So what does that mean?
- with the airdrop ending, DEC will lose it's additional value and people won't have an incentive to hold it
- card prices are way up but DEC has more buying power. This is good if you buy cards for DEC but bad if you sell them. Because you recieve less DEC (because it has more value). If DEC then falls in price you are essentially losing money
- Splinterlands said they will accept DEC at market value for Chaos Legion Packs, so people will use their overvalued DEC to buy packs. Splinterlands will most liekly liquidate the DEC to generate income and because they inteded for it to be at 1000 DEC = $1
- people have 2x or more on their DEC so they will sell it to take profits, leading in a dump in price aswell
While all that won't happen over night, I'm very confident it will happen sooner than later.
So be careful with you'r large DEC holdings and think about spending it for deflationary assets (like cards).
Here's a Youtuber who explain's this in a bit more detail:
And Dwayne Cunningham, another very prominent Splinterlands YouTuber, has also spoken on this matter.