SPS Liquidity Shortage in Hive-Engine

Splintershard (SPS) coin is the governance token of the splinterlands game and with the upcoming change, it is going to be much more valuable in the game ecosystem. this is a common phenomenon in any game that people like to play in the higher league because they get better rewards and a fantastic gaming experience. This game splinterlands is a play-to-earn game which means we have the opportunity to earn real money through gaming but even in the game where rewards are not there then also players like to play in higher leagues. The changes are announced already and we are going to have it live in the next quarter so in any case we are going to see the change getting implemented in the next couple of months.

SPS Stake will replace Collection Power

Currently, in the game, it is required for us to maintain collection power and based on this our eligibility is defined for the leagues. playing in a higher league means we are getting better rewards daily as well as at the season end which means everyone is interested to play in the higher league. this collection power is calculated based on the card holding because every card carries some collection power which is accumulated in total to define the sum and based on that bracket our league eligibility is defined.

With the upcoming change we will require to hold sps in our game account instead of the collection power and the bracket has also been released a couple of weeks back. Sometimes changes are good and I believe this is a good change because this will contribute to the price appreciation for the token which is much needed. After all, the value drop might result in a lack of interest for players. I like this change because this is good for the entire ecosystem and whoever is interested to play in the higher league will be required to hold the SPS token balance in the game account. Probably this will also reduce the selling pressure in the market and it is needed to put a hold on the further price decline for the token in the market.

SPS Liquidity Shortage

I keep on buying SPS from the hive engine because I am trying to increase my overall holding but today I see something which I never experienced before. It's been a long time since me buying this token from the market but today I observed that there are more buyers than sellers which means probably players are getting ready to deal with the change which is almost getting implemented soon. below is the snapshot from the order book where you can see that the number of tokens in the buy orders is much higher than what we can see in the sale orders. I can see only one seller selling almost 9000 tokens in total but as compared to these there are so many buyers buying with bigger quantities but sadly, they have to wait because of the liquidity shortage.

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If this situation will be happening continuously then I believe it will be difficult to buy the token from this market and that way the right approach would be to buy from another exchange. In hive-engine buying is easy and convenient and this is why I prefer to buy SPS from hive engine only but I'm surprised to see how the market dynamics change based on the supply and demand. I expect that this situation will continue to happen and it is high time that we need to plan things accordingly before the change goes live and probably that might also push for a price increase in the market.

My Buying Strategy

As I already mentioned that I have been buying continuously this token from the market but if I see a liquidity shortage here then I have an alternate option to go for. I know that there is an option to use different tokens in a game account to buy SPS and I can do that anytime if needed but my preference would be to check out the liquidity in this market first. I know that when there will be more buyers as compared to the number of sellers then the price appreciation is inevitable. this is a good situation for everyone but not for the buyers including me because I still buy almost every day and I would prefer to buy at a lower price because my goal is to build a better holding and not book the profit in the market.

I will be trying to manage some funds and buy a bigger quantity of SPS tokens so if in case the price goes on the higher side then also it will not affect much. I am trying to make my holding more than one 50K as soon as possible but it is not easy I understand. The current market is down and because of that I'm running short of funds which is why buying in bulk is not an option for me however if I can manage some funds then we'll get it done to avoid any price increase situation later on.

Thank you

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