I have been actively monitoring my investments all across Hive Blockchain. You must have noticed the increase of HIVE price. Which resulted in multiple chain reaction all across the blockchain. In addition the investments which were made during the low price of HIVE, those investments also made some shocking move. I literally mean, this is the beauty of being in the low price market. Where you slowly get to build up the infrastructure and later enjoy your investment going up as the price gets appreciated during the uptrend.
Hive reaching the price of close to 30 ish cent (0.2821) during its peak time today, made me realize few aspects regarding my Hive investments. To be precise, I never doubted that Hive will receover from its lowest price range. It was not a matter of "if" rather it was "when"! Like many other HIVE users we do have a belief in HIVE and we know that it will recover and when its price gets appreciated it will just slam the market and reach to its higher high and change lives all across the globe.
I have been in the Swap:Hive-Colony liquidity pool for few weeks. I have been closely monitoring my position and since HIVE saw a recent pump in its price, I also noticed my position value in this particular liquidity pool. As you may notice the sudden price hike which happened across the time frame of the last two or three days. The hive pump in price also increased my overall position value. The average appreciation in price was above 60%. Which is literally unbelievable from my POV. As of writing this post, my liquidity position is currently at 35.57 USD. Let me breakdown, what and how things are turning out.
Few days back I wrote an update in my liquidity pool position. The post was Making my Colony Tokens work for me | Adding more in the pool... In this post I shared about increasing my position slightly more and while adding the liquidity my position was close to $20 of worth. I am aware it takes some time for adjustments but I suppose the price did not make any difference at this point because HIVE was hovering at a stagnant price for the last couple of days, even though almost all the top crypto took some hit. I guess Hive is a late bloomer indeed.
Now my position was sitting at 40.78 Swap:Hive and 37839 Colony tokens in the pool (in the above picture). So what actually happened out in here, during the price appreciation of HIVE in the last few hours. During the price hike of HIVE, the amount of HIVE got its appreciation in price while we also can notice there are some Colony tokens got got missing in the pool. In accurate numbers, 39 Colony tokens are missing. In simple terms, I managed to be part of impermanent loss out in here. My colony tokens got appreciated and they got converted to swaphive token and since the price of Hive got appreciated in the positive side, I began to enjoy the profit of its price Hike.
Now the scenario would have been different, if the price of HIVE went down. I would have lost Swap:Hive and it would have been converted into some of the colony tokens in the pool, for maintaining the balance of the pool. Although, in more concrete terms I would have lost in terms of dollar value. I am not really worried nor I am that much happy of this price change since my position is so little that it does not concern me that much. But if it would have been a position of couple of thousand dollars, I would have been much more concerned and at this point I would have been far more happy than I am right now. As the price appreciation of HIVE would have taken my liquidity position to greater heights. And this post would have been much more enthusiastic and exciting than it is now,
But either way, being in the pool does have its benefits and risks associated to it. So better do your own research before jumping on any liquidity pools. As things can turn out to be much more enticing and exciting at the same time. And also another important note, always invest that much which you can afford to loose!
Image Source: Tribaldex
Best regards
Rehan
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