Let's try to understand what is happening with the SPS token, analyzing the internal situation of the token, such as the current price, which may have affected demand and APR. Furthermore, it is important to analyze the external situation that is affecting the token, such as the Bear scenario in Crypto that generates a cascading effect. Check it out!
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Current SPS Situation - Internal
When I entered Splinterlands to check it out and play the Brawls matches, I ended up getting a NEGATIVE surprise, regarding the current situation of the SPS token! Not long ago we were watching the Splinterlands governance token reach close to $0.01 again, reaching close to $0.009 about 40 days ago. To my surprise, when I went to check the price of SPS on the game dashboard, the value of the token was close to reaching $0.005.
We are talking about half of players' expected growth in less than 2 months, a drop of almost 50% in a very short space of time. After the impact and surprise, it is normal to ask yourself why this is happening and seek to know the situation of the SPS in general. Starting with the SPS token, it was widely speculated in relation to the purchase of packs, as the team was accepting it at close to $0.01 so after the sale of packs came to an end, demand for this function reduced.
As for the utility of the normal token, the Stake APR is close to 7.50%, while there are other more profitable options in DeFis and staking, which discourages players regarding the APR. And it seems that it is now easier to rent SPS, so the demand for having SPS in your own stake already seems to have decreased as the rental market meets this need. Therefore, possible solutions would be to increase the APR, perhaps adding a little glint or season chests for the stake; encouraging players to put liquidity in pools, which no longer happens after removing incentives and looking for more ways to use SPS directly in the game.
Current SPS Situation - External
Expanding the analysis beyond the SPS token, we have the market in general that has been facing a very negative period with BTC being traded at around 65k, and the whole issue of global uncertainty with wars. This generates a cascading effect, which starts with Bitcoin, and goes to altcoins, having an impact on the network token itself that Splinterlands operates and then on the network's tokens. It is a reduction in general liquidity that ends up happening, because money leaves the market to safer places.
Interestingly, even in this chaotic situation, two other tokens from the Splinterlands ecosystem have performed reasonably well. The DEC, which had fallen well below its "parity" of 1000 DEC = $1, has now shown a slight increase, reaching close to $0.70. The Voucher, which was once an unlinked token, is now linked with an option to exchange for DEC, has been stable, with a slight drop, around $0.02.
A few months ago the number of active players in Splinterlands was greater than 5000, while currently that number is closer to 4000, with some days recording numbers lower than that. This Bear Market in the crypto system has caused some most affected users to decide to stay away for a period, which causes the number of players to decrease, as investments decrease and negative sentiment dominates during the Bear. As much as news and updates continue to be made to Splinterlands, we do not see an arrival of new players to the game, partly due to the current market sentiment.
