I have been actively playing SPLINTERLANDS for around 3 years. Also, I started to play Alien Worlds in 2021. As an early adopter of both games, I have doubled, tripled quadrupled whatever I invested into them. Obviously, the earlier you jump into a project, the more opportunities you gain.
Though starting early lets you make decent gains, solid play2earn games are not designed to make short-term income. Instead, the rationale behind them is to create something long-lasting, such as Splinterlands operating since 2018.
Having experienced bears and bulls in my Play2earn journey, I realized lots of things about these processes.
Bear is Rough
As Play2Earn is not the main focus of investors, while there are L2 projects or new mainnet tokens, they are always more volatile than the others. Also, the investors can easily sacrifice their "small" bag of investment in Play2Earn games.
Still, Play2Earn, Move2Earn, or Metaverse tokens are seen as tokens that are kept for a couple of X for their small amount of investment. Considering the portfolio of an ordinary investor, these concepts cannot exceed %5 of their crypto investments. Mostly they will swing between below 1% and %3 in total.
In red and descending crypto market capitulation, there is little hope for the concept tokens to diverge from the trend. Eventually, they lose the majority of their value.
Consolidation is What You Need
In an accumulating market condition, the top cryptocurrencies, Bitcoin, Ethereum, ETH L2, new Mainnet projects, and top De-Fi projects, gain a lot of value and most probably double in time. Their range of consolidation can be around x2 or x2.5 in a vertical trend.
MATIC made 3x meanwhile.
Ethereum made 1.4x
Bitcoin carried the market to higher levels and the top-tier projects were able to make 3-digit returns quite easily.
However, things are different on the side of GameFi.
These projects do not skyrocket when the whole market is rising, rather, these projects get value when the whole market is almost satisfied with massive gains and they move more sources to the concepts (metaverse, play2earn, move2earn) as they stay rather cheap.
What's good is that you still earn cheap and more tokens knowing that these tokens wait for their time to come!
Splinterlands SPS token made 40% gains.
Axie made 97% from its bottom.
TLM (leading P2E for the market) made 2x
While these tokens are not priced, you can buy their cheap and promising NFTs for low prices, and accumulate more tokens (daily 10 - 20 SPS & 10+ TLM for me) as their market cycle is slightly different
Personally, I believe accumulation/consolidation phases are better for player-investors to make returns in their Play2Earn journey. In the bull run, everything will be more expensive, you will get fewer tokens from the pools, and volatility will be higher.
Embrace consolidation and enjoy!
Hive On ???
