I was asleep when hive crossed the 70 cents mark and I woke up this morning to a lot of excited Hive people on Twitter. I completely understand the excitement but I was a bit more pensive than anything else.
For what it's worth, I understand that in the current state of the market, any pump is often cause for excitement. Alas, this pump even got Hive into the top 100 coins and that was pretty nice to see.
Right now, virtually everything is in the red zone, so a minor pump could really push you up the ranks.
At a fully diluted market cap of $283,505,304, Hive enters the top 100 but again, it really should be much higher than it is.
During my usual crypto rounds, I also noticed some of the bullish statements about hive were somewhat misconstrued.
This CMC in the comment section is quite bullish about Hive because of "Blockscale ASIC miners". I reckon the person is confusing Hive with the other Hive blockchain that is a mining company. For whatever little it is worth, at least the user mentioned that hive has a lot of Dapps.
$1 Hive
At the current price, I doubt there will be a lot of people excited about taking profit. Perhaps traders and a couple of noobs in the system but if you've been around for at least one year, you'll know that there's nothing special about the current price.
Again, I need to add that I'm pleased by the pump and considering the price of Bitcoin, I guess we could say this is huge but anything less than $1 Hive feels kind of depressing to me.
Don't get me wrong, I was around when hive was trading below 20 cents and back then I use to fantasize about times like these but we're moving forward and I feel like we can be much better than we are.
There are so many investment opportunities on hive and as I see it, a win for any of them often trickles up the ladder and positively affects the price of Hive. What I mean is that assuming SPS experiences a dramatic pump, Hive will somehow benefit from the pump.
For me, this minor pump doesn't change much about my activities in the second layer. I'm still slowly redirecting some of my hive towards my favourite second layer projects.
End of SPS airdrop
Every day brings us closer to the end of the SPS airdrop and I keep wondering how this might affect the price of Splinterlands assets.
A big part of all the pumps in Splinterlands ecosystem was due to the airdrop. The increase in demand for virtually every asset in the game led to a major explosion in the price of assets.
At the time of writing, there are only 28 days of airdrop and when the airdrop ends, what could this mean for the price of every other asset in the game?
I don't think asset prices will experience any dramatic drop because Splinterlands has become even more rewarding and most players/investors will not be dumping their assets anytime soon.
There's also the fact that Splinterlands is really crowded these days. The internal demand for monsters will ensure the price of assets doesn't drop as much.
Unlike monsters and DEC, SPS airdrop will now become even scarcer than before due to the end of the airdrop.
Unlike the airdrop period, any SPS you earn will have to be earned. Whether it is through validator licenses, staking or ranked battles, all SPS will have to be farmed.
I reckon that the sell pressure of SPS will reduce and more SPS will eventually get staked. Right now, 53% of SPS is staked and I think a lot more will be staked in the near future.
Final thoughts.
I'm happy about the Hive pump because there's something special about it. @acidyo Tweeted that
There is something special about this #hive pump, not just that the rest of the market is heading in the opposite direction but also that #steem isn't pumping.
Love to see it.
We're seeing a great decoupling from not just Steem but the general crypto market, as Bitcoin dumps below $20K and Hive tend to $1. Even though $1 is FUD, it is still a nice round figure that I reckon we should retain in a bear market.
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