SPS Market Analysis Aug 1 – Aug 7 2025 | Splinterlands #463

The Trump administration has taken concrete steps to integrate crypto assets into traditional financial infrastructure, with President Trump expected to sign an executive order directing the Department of Labor to allow crypto in 401(k) retirement plans. This will continue the recent theme of institutional adoption of crypto. Also, the CFTC announced it is seeking public discourse on allowing registered exchanges to list spot crypto asset contracts, currently limited to futures only. Meanwhile, the SEC under Chair Paul Atkins launched "Project Crypto" to modernize securities rules for crypto asset trading, with goals to "unleash the potential of onchain systems".

On the institutional front, Ripple acquired stablecoin payments platform Rail for $200 million to boost its digital payments infrastructure. The crypto IPO trend continues with Thiel-backed exchange Bullish targeting over $4.2 billion valuation. Exodus Movement revealed its own crypto treasury holdings of 287 Bitcoin, 2.7k ETH, and over 34k SOL tokens, with two-thirds of revenue generated in Bitcoin.

Current crypto market price action has Bitcoin holding above $116k despite some consolidation, Ethereum pumping above $3.9k, Solana at $175, and XRP pushing above $3.34. With August historically being crypto's worst month, any pullback should be viewed as opportunity in this phase of the 2025 crypto bull run.

SPS Weekly Performance Overview

Source

SPS price action over the past week was yet another challenging week, declining from $0.00696 to close at $0.007232. This is against the backdrop of the concerning longer-term downtrend. The daily price action reveals a pattern of lower highs and lower lows, with the token struggling to maintain momentum above key technical levels. Looking at the technical structure, SPS has been trapped in a descending consolidation pattern, and the current price sits close to multi-month support zones that, if broken, could trigger more significant downside.

Market Analysis - Trends

I was watching one of aftersounds latest video about the SPS flywheel

and the splinterlands team currently holds approximately 180 million DEC, with markets and pools containing around 300 million DEC. At the current burn rate of roughly 40 million DEC weekly, we're tracking toward flywheel activation in mid-September. This mechanism should provide consistent weekly buy pressure, potentially offsetting the sustained selling pressure that has characterized SPS price action. If the flywheel activation coincides with reduced selling pressure, this may create an asymmetric opportunity heading into 2025 Q4.

Market Analysis - Volumes & Liquidity

SPS trading volumes averaged $110k daily this past week, showing inconsistent patterns that reflect the broader lack of conviction in the token. The volume spike to $161k on August 1st coincided with price weakness. The relatively thin liquidity means any significant buying or selling pressure can create outsized price movements, both positive and negative. When compared to the broader crypto markets institutional narrative, SPS remains a niche gaming token with limited mainstream awareness.

Market Analysis - Support & Resistance

The technical picture for SPS shows critical support around the $0.0065-$0.0068 range, which represents previous consolidation zones from earlier this year. The descending triangle pattern that has characterized recent months appears to be resolving to the downside. Also, the current price of $0.007232 sits just above this zone but has failed to establish convincing higher lows. Key resistance emerges around $0.0075-$0.0078, marking previous breakdown levels that would need to be reclaimed for any meaningful recovery. A break above $0.008 would signal a potential trend change.

Concluding Thoughts

This week continues to highlight the disconnect between the broader crypto institutional narrative and SPS. While Bitcoin and Ethereum continue to benefit from regulatory and institutional adoption, gaming tokens like SPS remain dependent on ecosystem-specific developments. If the flywheel executes successfully in mid-September, this could stabilize price action and provide a foundation for recovery.

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