Splinterlands: Rental prices dropping and update on my rental strategy

in LeoFinance9 months ago

Along with the drop in the crypto market over the past two weeks, DEC prices have dropped, and it has affected both the rental markets. After all, when the DEC price drops, it also means that there will be less DEC rewarded from winning fights. So there needs to be some changes to my strategy. My basic rental strategy is explained in Passive Rental Income Source post.

Rental Progress

One thing to note is that I did not change the prices on my cards that much so it led to me missing out on some income. However, I did verify that the end of season price changes are still valid and it came without my previous DEC rental price. So, I think I may change prices towards the last few days of the season and the day after the start of a season. You can also find my previous report to compare the values. One thing to note is that Chaos Legion cards are now out so some of the people are now choosing to buy or rent the Chaos Legion cards instead.

Purchases

card buys.png
As always, I used Monster Market to purchase my cards for the cashback. I used up the DEC I earned from ranked battles, rental income and rewards chest over the past two weeks to buy a few more legendary cards. Djinn Oshannus seems like the best card to buy for APR but I felt like spreading it out a bit more, so I bought a few of the other legendary cards on the market. Even at the start of the season, it looks like these cards will still provide an APR of over 50% so I don't think there will be any issues.

Income

My income and all rental price management is done through Peak Monsters because of the tools it provides me. As it allows me to manage bulk load prices, I find it much easier to change the price of duplicate cards.
previous.png
Above is my previous report's income and below is my current income.
current.png
As you can see, both the value of my collection and the rental income has dropped compared to last time. I have changed up my prices and I am waiting for people to rent out my cards. In a way I have checked the market and it looks like the prices of the cards keeps dropping. I did expect prices to dip when Chaos Legion came out, but I didn't expect it to drop so much from it.

Conclusion

I expected the drop in prices due to Chaos Legion but the amount the prices dropped kind of shocked me. I guess the people who were renting before must have shifted their focus to Chaos Legion cards and the supply of card rental people stayed the same. So, prices had no choice to correct and with the price of crypto correcting, it went down further. Either way, my strategy is using my DEC to earn more DEC so the change in prices doesn't affect me too much. However, it is starting to look a little less attractive in terms of a investment. It is better than nothing though. In the long term, both the asset and the income will add up overtime as they compound.

Feel free to leave a comment if you read my post. If you have any questions, feel free to ask and I will do my best to answer.

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As markets change, so do strategies. Thanks for being relevant and engaging!

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Yea the prices have changed and I think prices will drop even more because the reward cards I am buying are still being printed. At the same time, there are millions of Chaos Legion packs to be bought so prices will continue to go up.

!LUV

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My rentals and overall collection value took a massive hit as well but I been with SPlinterlands since the start and have seen these dips before. Its DEC for airdrop points I'm after so the DEC loss is what is a bummer to me. I'll rectify that next season when I put my full collection up for rent.

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People are focusing on chaos legion pack a lot because it is cheap to buy and also to rent. So many beginners are already buying pack and increasing thier chances to stay in the game. Rentals will always be massive especially since we will be having more people after the general sales

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Yea the Chaos Legion cards are really strong as well. I can see myself winning quite well in the lower leagues using them. If you add some epic and legendary cards on top, I think making Silver ranks wouldn't be too hard.

According to the markets, it looks like people might be able to rent about 250 Collection Power per 1 DEC everyday.

!LUV

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Chaos legion has changed a lot in the game, waiting for what modern league will look like

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I think it's just a matter of hodling until January and then looking for some bargains once the GS cards flood the market!

!PIZZA

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Yea I expect prices to continue to drop because there are a lot of cards being printed once Chaos Legion packs can be opened. I think prices will go back up when we are waiting for the next round of packs.

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!PIZZA

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This info is so good I had to reblog it. Especially since you linked your Rental Income Post. I feel that a lot of Hive users like myself will get a lot out of it.
Thank you

Yea the rental income is a valid passive income source and it works well if you consider things in DEC terms. It just means a slightly slower growth but any growth is better than none.

!LOL

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Yeah price in general has fallen across the board. Combo of markets getting slammed the last week or two and chaos packs now being pretty cheap they can start building their own decks.

What I'm hoping for is a pretty decent delay between new packs after Chaos so the value remains.

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That is my hope as well. We might also have to rely on more users entering the game and building a demand for more cards as well.

!PIZZA

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I figured they would drop even more. I have stopped playing until I figure out chaos battle plans. I really hate the new cards lol

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I would keep playing even if I did not figure out Chaos plans. Personally I think the new cards are fairly strong also. However I do think water and maybe death got nerfed a bit.

!LOL

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This was very interesting to read, as I actually am just about to jump in to my very first Splinterlands investment in over a year (going to buy 100 packs of Chaos Legion = 110 w/ the bonus), and rent out everything I pull. I don't have the time to play, but I figure the cards + rental income should increase nicely over time (after watching previous cards I had rise).

Can you tell me more about Monster Market and this cashback you speak of? This is facinating to learn about as I'm brand new to renting cards out as a passive income strategy.

Thank you!

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Rental income is nice but everything is valued in DEC. As I earn everything in-game, I don't really care about the dollar price changes.

Monster Market is a front-end for the shops where you can buy cards. The front-end doing the transaction gets like 5% of the money spent so Monster Market gives you back 3% (60% of their revenue). So in a way, it's like using a credit card and getting some cash back for your purchases. If there is a card you wish to buy and it's already listed on the market, it's best to go there.

!PIZZA

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RE: rentals - fair enough, I can live with that. I don't mind the dollar fluctuations either, simply looking for alternative ways to generate some yields, while also building up a portfolio of underlying assets (cards that appreciate over time seems like a solid move - really wish I would've kept the Golden Yodin Zaku I pulled last year!)

re: Monster Market - that's awesome! Thanks so much for sharing that, that's an excellent way to hit up the market. I will definitely keep this in mind moving forward!

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My rental income also dropped, only 20% compared to last month.
I think my situation is quite similar as yours.

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Yea I think the minimum we get has dropped by quite a bit. After all I use to be able to rent Oshanius for almost 20 DEC but now it's like 4 DEC.

!PIZZA

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I checked the market yesterday and rentals are almost free for the CL cards. Some of them are even selling for insanely low prices if you ask me.

There are some great commons that I'm planning to buy in bulk that is sold for less than 10 cents. Time to scoop some good ones while they are cheap.

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Yea it might be a good time to buy them up if they are that cheap but I think it will be cheap until Chaos Legion packs are almost sold out. So I am not in a rush.

!PIZZA

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I have placed an auto renting system of cards.

The Peak Monsters auto-renting is quite good. However you should check every once in a while so you are not overpaying.

!LUV

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I just got started in this realizing I wasn't doing much with my small deck due to setting aside more time for blogging and engagement.

Are you getting into golf foil cards to rent due to the scarcity, or simply what is more in demand at the moment? I see they command a much higher rental price, while being much more expensive to own.

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I spend maybe one hour a day or so to finish my quest and drain down my dark energy capture rate.

I did buy some gold foil rare cards but even those cards have had their card and rental prices dropped.

!LOL

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