Crypto Analysis | SPS Continues To Soar

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SPS seems to have finally overcome it's downward trajectory

This has been a long time coming. It has basically took the team 2 years to fix the economy (further improvements should still be coming) and a long bear market didn't exactly help price development. Back in October I already signaled that a potential trend reversal could be imminent. Now that price finally broke out of the falling wedge, SPS is skyrocketing and is already up around 100% from its ATL. The movement has been rather explosive...

The main catalyst for this price movement was of course LAND 1.5 which finally released last week. With DEC now at peg we have seen around 30M SPS already being burned. This should be the start of the infamous flywheel having a positive price feedback on the system. There is one caveat, however: It all hinges on the idea that LAND 1.5 will be a success. So far, however, LAND is only at around 12% utilization. We are still early, but it may take some time to reach 50%+.

We can see that the DEC supply has actually increased quite a bit through the SPS > DEC conversions. The distribution also shows that LAND has now around 960M DEC staked out of a total 7.5B possible. This is up 70M from yesterday! So it seems like people are still setting up their LAND. Together with a positive SPS price development this should motivate more people utilizing their SPL assets to earn more SPS.

Bigger Picture

Since we can expect the bull cycle to peak at around late 2025, we can draw trend lines signalling where SPS should be in terms of reaching potential targets. I have already stated before that I think it's quite possible for SPS to reach $1+. In the chart below we can see 3 potential targets.

• $5
• $1
• $0.5

So far SPS is even above the $5 target, although we will get a more accurate picture once SPS sees a correction.

The bottom for that correction will probably give us a good hint at where SPS is headed. In 2 days Rebellion will also launch and for Q1 next year we can probably expect the release of SOULKEEP. I am sure that these developments will attract new players and grow the ecosystem.

 

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As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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