Last Friday the crypto space drop in value. I have heard it was the biggest drop in marketcap history of crypto which says a lot. Yet I did not have a lot invested since I lost most of it in the 2020 bust. So have slowly built what I had remain mostly in Splinterlands.
With that being said even the tokens in Splinterlands are not immune from the current crypto market volatility. Just over the weekend I converted most of my liquid DEC into Hive and now I am looking at potentially swapping back some of the Hive into DEC. Why?
The bump in DEC to Hive in the Friday crash has left the price between Hive and DEC widen. Any price swing is a potential arbitrage. The price range has been moving between 0.0039 Hive per DEC to 0.0044 Hive per DEC. Nearly 10% price movement and if I can even get just 5% of that for profit that is a decent amount of DEC. The idea here is to accumulate enough DEC so I can stake into my land plots.
As of present I have over 82k DEC staked and hope to get my energy required very soon. At 113k DEC. The plan is to stake enough DEC so I can passively earn in Splinterlands land plots.
In similar trend the price of SPS is rising and last Friday due to liquidity crunch the exchange rate of SPS to Hive almost got to 0.08. That has not been so high of a ratio for multiple years. I still remember days where 1 SPS was close to a Hive each. Those days I wished I had just held onto Hive but I am a long term holder of SPS.
Looking ahead if there is more volatility to come for crypto there could be more opportunities to trade in Splinterlands tokens. As majority of my tradable tokens are in Hive it would maybe a wise decision to go stable tokens for now to see if potentially Hive could fall further. Another trade is to hold more DEC as the token is designed to be a stable token then it would also rise base on a Hive price drop.
For now staking the DEC for land production will also earn me passive income in Splinterlands resources.
I was building up my resources in hopes to create Wagons but as of now it appears the prices of the Wagons have drop close to 40% from last week and not as attractive to make. I may just hold onto the resources further to see if prices appreciate.
Posted Using INLEO
Good luck on those trades, but prices move fast. I would try to figure out just how much you want to risk on those trades. As for the production using your resources, it looks like wagons aren't as appealing to people with the flash crash that happened.