GLX is now in an interesting turn.
GLX is the governance token of the Genesis League Sports which is currently producing the game Genesis League Goals in partnership with MLSPA. After a year-long development, the game is now ready to play and the team is incorporating players feedback and enhancing the game. The governance token GLX is airdropped for 1 year to Splinterland's stakeholders and for staking GLX.
Both of these "rewards" put huge inflation on the GLX supply. Also not all Splinterlands players are inclined to play GLS/soccer-related games, so they have little utility for the token, or in other words, it is "free" money to them that they can get by dumping GLX.
High staking APR and airdrop caused huge inflation that kept pushing down the price of GLX tokens each week but I felt some change in this trend from the last 2 weeks.
Look at this chart, from 12 December onwards (when it touched its lowest) it started showing resistance to go further down but instead, it bounced to the upward trend, Also, the majority of transactions are in "buy" , so it means token is not getting dumped also.
Does it mean GLX is all set to go up now?
Site Data shows a slightly different picture?
I keep track on GLX token stats (taken from https://genesisleaguesports.com) every day and below is the tabular representation of the data.
| Date | Total Supply | Total Liquid | Total Stake |
|---|---|---|---|
| 22 Dec | 260,038,387 | 102,849,926 | 157,188,461 |
| 21 DEC | 260,003,717 | 102,626,911 | 157,376,807 |
| 20 DEC | 259,947,152 | 102,094,086 | 157,853,066 |
| 19 DEC | 259,882,775 | 101,812,179 | 158,070,596 |
| 18 DEC | 259,845,416 | 101,284,510 | 158,560,905 |
| 17 DEC | 259,689,582 | 101,234,925 | 158,454,658 |
| 16 DEC | 259,648,912 | 101,428,511 | 158,220,401 |
Based on this data, in 7 days GLX supply is increased by approximately by 500K, but liquid GLX in the system is increased by 1400K, and staked GLX is reduced by 900K. Staked GLX is decreasing and increased liquid GLX suggests somewhat suggestive of "sell" pressure.
Is Liquidity pools can be the reason?
The team announced the liquidity pools and rewards it make sense to get GLX in liquid form, but still, there is no date announced for it, nor does it look like it is coming very shortly. Based on the below charts, I do not feel that liquidity pools can be the reason.
GLGT trends.
As you see in the below chart, GLGT (generated by staking GLX) is still going down.
Liquidity pool rewards will be for GLGT also, so it makes sense to accumulate GLGT.
That's why, I consider the GLX price upward movement as interesting because the data that I am looking at, does not hint at it but in reality, it has been showing strong resistance and upward movement for the last 10 days.
Posted Using InLeo Alpha
