What if I told you that there is an altcoin that is up 35% in the last month, has a solid team behind it and is one of the oldest play to earn games with a loyal player base and if it does a 150x from here it will not even reach its all time high?
Take a look at the five day chart above, that is a very bullish chart! In the last five days SPS is absolutely on a tear! But let's look at more than the last five days, let's take a look at how SPS performed against BTC since the last BTC dip:
As you can see SPS is up 43.31% and BTC is up only 5.2% since August 5th!
But what is the potential here? Right now SPS is at 0.74 Cents! That is less than a penny! The all time high for SPS is $1.07 which was three years ago. SPS is a main token on the Splinterlands play to earn game which has been around for over five years and has a dedicated development team that delivers updates to the game every single week. So this coin can 100x and it will be worth $0.74 per token. But what is the market cap? Is it realistic to 100x from the market cap stand point?
The current market cap is $3.6 million dollars. At 100x the market cap would be $360 million. IMX is $2,088 million and Axie Infinity is at $738 million and GALA is at $700 million, Sanxbox is at $645 million so 100x and even 200x does not seem to be out of the question.
What is the tokenomics like? There is a maximum supply of 3 Billion tokens with 1.328 Billion tokens already out, from those most of the tokens are not liquid and most of the illiquid tokens were staked for 4 weeks by the players in the game. 858,589 tokens are staked for four weeks and about 124 million tokens were burnt, with about 4% of the tokens locked up in Splinterlands DAO:
Here is what the token distribution looks like
The current APR for the staked SPS tokens is 12%, this doesn't seem very high, but that is because staking APR isn't a primary reason why Splinterlands players stake their tokens. The main reason is to earn SPS. Without staking significant amount of SPS it is not possible to earn much SPS tokens.
But there is more! Another token used in game for purchasing cards and other assets is DEC. Here is what happened to DEC supply in the last 120 days:
As you can see there was a drastic drop in DEC supply from 5.694 billion to 5.619 billion. That is almost 70 million DEC or $70,000 USD worth of DEC being burned. What caused this burn? Very simple Splinterlands players spent $70,000 to unlock their reward cards! That is simply to make these reward cards sellable on the market or send to another player so that that player can max out their card or to use these cards on land. That is real in-game economy! Continued reduction in DEC supply and growth of the SPS token can trigger a flywheel mechanism where Splinterlands players or investors can start burning SPS for DEC. The more SPS is burned the higher SPS price will go and this could lead to a crazy pump that could make market cap calculations irrelevant and result in SPS doing a 300x from here.
And if you thought this is all there is you would be wrong there many exciting things coming up for Splinterlands one of those is a DHF Agreement proposal that looks to be sure to pass the DAO vote:
This proposal will basically inject $500,000 USD into the Splinterlands ecosystem from the Decentralized Hive Fund!
Right now Splinterlands is flying completely under the radar, but they plan to finish the new player experience improvements and do a major marketing push to acquire new players, when that happens all the Splinterlands assets are likely to skyrocket. The easiest play in my opinion is the SPS token.
So what am I doing about it? I continue to earn SPS tokens through playing and adding it to my stack. Right now my stack is worth only $2,556 for 352,230 SPS tokens but if it reaches all time high it will be over $352k USD. I am willing to take a long term bet on this fun game!
Disclaimer: None of this is a financial advice. I am just sharing what I am doing and how I am playing the current crypto market. If you wonder what is the best way to get involved you can use my link to begin your Splinterlands journey.