Three reasons why the price of Aavegotchi (GHST) has risen to an all-time high

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A play-to-earn platform, an imminent ‘portal’ sale, and the “NFT summer” all contribute to GHST’s 40% breakout to a new all-time high.

In 2021, the nonfungible token, or NFT, sector seized the world by storm, with crypto and corporate sector influencers, globally famous companies, and popular sports teams all embracing the burgeoning digital collectable craze.

Following a brief sector-wide downturn that coincided with market-wide dips in early May, the NFT sector surged back to life, with collectibles such as CryptoPunks, Pudgy Penguins, and Bored Ape Yacht Club (BAYC) selling for record-breaking prices.

Aavegotchi (GHST), a decentralised finance (DeFi)-focused NFT ecosystem that runs on the Aave protocol, is one project that has benefited from the recent bull market in the NFT industry.

Data from  TradingView shows that since reaching a low of $0.896 on June 22, the price of GHST has rallied 202% to reach a new record high at $2.74 on Aug. 13.

GHST/USDT 4-hour chart. Source: TradingView

Three reasons for the bullish price performance for GHST include excitement for the upcoming Haunt 2 portal drop, income opportunities offered from selling Gotchi’s and wearables and the launch of new mini-games that help to attract new users.

Upcoming portal drop excites the community

The biggest development to come out of the Aavegotchi community recently was the announcement of the second Haunt which is scheduled to happen from Aug. 26 to Aug. 29

In Aavegotchi, Haunts are the sole way for players to receive newly released Gotchis, the ecosystem’s in-game characters, and they are summoned through ‘portals’ that are raffled off during the Haunts.

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Haunt 2 is, as the name suggests, only the second portal drop for the Aavegotchi ecosystem, and it will add 15,000 new Gotchis to the protocol. 12,000 are up for grabs in a bid-to-win auction, and 3,000 are up for grabs in a raffle.

All bids are placed with GHST tokens, and raffle tickets are purchased with FRENS, a digital asset acquired as a reward for staking GHST on the Aavegotchi system.

Traders accumulate GHST to buy and sell Gotchis and wearables

A second reason for the growing strength of GHST is the income opportunities generated when participants engage with the platform.

As previously mentioned, there has only been one Haunt that has released portals capable of summoning Gotchi’s and to date, 6,992 of the 10,000 portals have been claimed. The most recent statistics show that 425 Gotchi’s have been sacrificed, meaning that there are currently 6,567 Gotchi’s in existence.

Raffles allow users to win wearable things ranging from “ordinary” to “godlike,” which can be utilised as accessories to boost the worth of a Gotchi.

Because Gotchis and wearables are so rare, some users have been able to gain a considerable return on investment by selling them in secondary markets.

With a fresh possibility to purchase low-cost portals and free wearables via raffles — both of which require GHST — on the horizon, demand for the token is expected to rise until Haunt 2 is completed.

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On that topic, it is also prudent to warn that Haunt 2 has the potential to be a “buy the rumour, sell the news” type of event, which could result in a drop in GHST demand. In several cases, altcoin values have fallen after the actual product delivery or hard fork upgrade has been completed.

NFT summer brings an added boost

A third reason for the bullish price move in GHST has been the overall performance of NFTs over the past couple of months, which has led many to refer to it as an “NFT summer.”

The bullishness witnessed in the NFT area has resulted in price hikes for the GHST token as well as the numerous collectibles available in the ecosystem.

With the momentum behind NFTs continuing to grow as Aavegotchi prepares to expand the amount of collectibles in its ecosystem, the value of both GHST and in-game products may climb as new participants find this unique combination of NFTs and DeFi.

 

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