Hive's Secondary Tokens Rising - Trading Journal (1.04.21)
I usually discuss the equities markets, but I also watch the hive's second layer tokens daily since I blog on LeoFinance daily and a daily user of Hive. I will cut to the chase and mention what I have been noticing for the last few days. Front page chart lists currently top 10 most traded tokens on Hive-Engine. Its been almost a year since Hive forked from Steem. What has interested me the most on Hive is how much value the ecosystem has created to its users. Value in passive income, entertainment, and peg cryptos.
Four out of the ten are related to games. DEC and PLOT for Splinterlands, SIM for dCity, and Starbits for Rising Stars.
Two are related to LeoFinance. Leo and LeoM its token and miner respectively.
The remaining four I consider peg trades relative to Hive even though the asset traded into has appreciated. That is LTC, BTC, STEEM, and hive-engine's BEE token. In retrospective all these peg tokens except for Hive-Engine's Bee has appreciated while Hive itself has drop in value. Hence it is understandable users are trading into these assets to store value.
What got my attention is the recent demand in the game tokens. I play the games listed in these top 10 tokens literally daily. The DEC in game token in Splinterlands only last few days have increased dramatically but has always been the most traded relative to $ volume. This makes sense since Splinterlands is the most active dapp in the market.
ETH has reached over $1100 today which is more than a 40% and DEC has taken advantage of the recent ramp up in ETH. The last few days notice how the candle prices has been longer than the past. Sign that the token is being accumulated do to large amount of DEC changing hands.
LeoDex's volume charts confirms this.
More people are buying up the asking prices of DEC making holders who have kept their DEC in their game wallets to start selling and selling in large numbers. What is bullish is that all this selling has been absorbed. Demand for the other in game tokens SIM for dCity and Starbits for Rising Stars are in similar positions.
SIM for dCity
Starbits for Rising Star
The daily price movement in both SIM and Starbits has widen with the longer price candles. The daily volume has been increasing steadily but much more noticeable in DEC and SIM. In time I believe Starbits will also rise in daily volume.
The reason I am posting this is that I believe in a short period of time a large move will come from these game tokens. When the supply gets absorbed either there will be more buyers coming in to push prices or more sellers bring out further supply. I personally believe it will be the former. Long term investors in the game will not likely give up further stakes in their in game tokens. This is potentially good news for Hive too.
We have witness how Leo has been able to appreciate far more than Hive over the time Hive had its fork from Steem. Now the game projects Splinterlands, dCity, and Rising Stars is seeing similar potential in their in game tokens.
The Ways to Profit From This?
Since daily candles has been longer the potential to trade the in game tokens for a gain has been easier and profitable. For instance in DEC the past two days I have been able to buy DEC at 0.0075 Hive and sell at 0.008 Hive on the same day. Small amount of DEC but I'll take the profit any day. To me this was easier to earn DEC than playing battles.
Traders can do the same with SIM as daily range is 1 SIM per 0.0046 Hive to 0.0049 Hive. The SIM is actually easier to trade in and out due to payout is fixed daily. Right when the SIM rewards are distributed the remainder of the day the price has dropped. Then around end of the day and early next morning the SIM price rises. This likely due to demand for SIM right before daily payouts are given. I am not sure, but I am playing the pattern.
As always trade at your own discretion. This is not investment advice.
Stay safe out there and thanks for reading!
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This is pretty interesting because I have never paid attention to gaming on steem/hive. I remember when steemmonsters came out but I couldn't figure out how to play lol. I still have a bunch of starter packs. I mostly trade my hive-engine tokens for hive-pegged and then into leo. I think it would be good for me to learn to trade! Thanks for posting this
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Great advise on trading the in-game tokens. I should stop dumping my SIM right away each evening and just put them in as sell orders. That could bring quite a few percentage point extra over time.
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