Hi friends,
For dedicated Splinterlands players, it might be surprising to see the price of $SPS quickly drop below $0.1 USD. However, this is actually quite normal since the overall cryptocurrency market is also declining. What puzzles many people, though, is that when the crypto market, especially the GameFi sector, rises, $SPS sees relatively smaller gains. On the other hand, when the market declines, $SPS tends to drop even more.
In my opinion, the Splinterlands card rental market allows players to profit without actually owning any Splinterlands assets. By paying minimal rental fees, they can earn $SPS and either convert it to $DEC to sell or sell the $SPS directly. This continuous outflow of value from Splinterlands assets might be the reason for the declining value. As for why the proposal to increase rental fees in the card rental market was rejected, I suspect it’s because most of the major players are engaged in similar arbitrage strategies. The end result is that the price of $SPS remains stagnant or even worsens. Of course, this is just my baseless speculation.
So, if the rental market were shut down entirely, would $SPS prices improve? I think it might help, but I can’t guarantee it. The purpose of the rental market is to lower the entry barrier for new players, but I genuinely question how many new players are actually joining. If Splinterlands could expand to other blockchains, like TON, it might attract real new players. However, Splinterlands seems deeply tied to the Hive blockchain.
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