Aavegotchi is a blockchain gaming ecosystem built around decentralised finance-focused non-fungible tokens inspired by digital pets such as Tamagotchi and CryptoKitties. The project introduces a number of innovations into the mix, such as using Aavegotchis as DeFi collateral to earn staking rewards, dynamic avatar rarity, and user participation in decentralised autonomous organisation governance.

The GHST coin is the governance token in the Aavegotchi universe and is used to buy Aavegotchis as well as a range of digital assets, such as portals, wearables for your digital pets, and parcels of land. Players are incentivized to hold GHST in order to participate in ecosystem governance and can earn GHST by earning staking rewards or through rarity farming.

We have put together everything you need to in order to get a better understanding of what affects the price of GHST and how it has performed in the past.

Aavegotchi Price History

On Sept. 14, 2020, the developers of Aavegotchi formally launched their GHST coin on the open crypto markets. The Aavegotchi coin (GHST) hit the market trading at a price of $0.66 following an initial coin offering in September 2020. The price experienced some initial instability as it bounced briefly up above $0.90 before dropping back down below $0.56. Thereafter, GHST remained fairly level until late November 2020, when it began to fluctuate once again – rising to over $0.70 in the first half of December for the first time in a couple of months.

This brief upward foray didn’t last, however, as the rest of December and much of January saw GHST price sliding gently downwards again. It wasn’t until late January 2021 that GHST began to rise in earnest. In just over a month the price rocketed up to $1.74, an increase of 162%. Because the price had flatlined over the preceding months, this means the gains since launch were also about 160%.

In March, Aavegotchi price remained buoyant, relative to its earlier levels and reached the peak of $1.74 for the second time in a month. This second peak was followed by a month-long decline through April but met sufficient support at $1 to send it spiking back up. This fresh rally saw the price formally reaching new highs above $1.80 but still within the same ballpark as previous maximums. It wasn’t until late July and early August 2021 that GHST price managed to break through this ceiling to reach highs over $1.93, before finally breaching $2 in August.

Analyzing Aavegotchi Price History

[guidelink ghst] price history can be analyzed with many of the same techniques as the stock market. Technical analysis involves using various indicators while studying price charts in order to make sense of previous price movements. With GHST, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of traders buy or sell their coins on exchanges.

Fundamental analysis, on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. The Aavegotchi team launched GHST through a decentralized autonomous public offering. This involved a two-week pre-sale in which an allocation of 500,000 GHST were sold for $0.10 each. The public sale was then opened up, offering an unlimited quantity of GHST along a bonding curve powered by Aragon Fundraising. This model uses a bespoke mathematical formula to determine the coin’s supply and price – a measure that’s necessary because the GHST token doesn’t have a maximum supply.

Broader market trends have yet to show a direct correlation with GHST price, and the upward spikes that occurred in March, May, and August do not correspond to similar rallies in the crypto markets more generally. That said, taking a broad-brush view it might be possible to say that the general bullish trend of the past few months does coincide somewhat with a similar thrust in the crypto sphere that started towards the tail end of 2020.

The overall price trend of GSHT tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing the Price of Aavegotchi (GHST)

Strikingly, the GHST coin doesn’t have a maximum total supply. Instead, the platform makes use of a bonding curve to regulate the ongoing distribution of GHST. One function of this is that the curve ensures that higher utility should positively impact GHST demand and price over a given time period.

The total supply of the GHST coin is dynamic. As investors use their DAI to buy GHST from the curve, new GHST tokens are minted and the total supply of GHST increases. Moreover, the inflation of GHST tokens through net purchases on the curve is positively correlated with the price. In short, the mathematical formula of the GHST curve is set to increase the price of GHST tokens as the circulating supply of GHST on crypto exchanges increases. The immediate effect of this is that the price of GHST at any given time is closely correlated with the popularity of the token.

Another effect of having such a controlled relationship between price and circulating supply is that the coin’s price has a measure of protection against attempts to pump and dump the price by larger market players.

As GHST is staked to mint land parcels in the Aavegotchi Realm and is required to purchase in-game items such as wearables, consumables, and Aavegotchi portals, demand for the token is linked with the popularity of the game. A growth in the number of Aavegotchi players therefore has the potential to raise the price of GHST.

Live Aavegotchi Value and Market Cap

The market price of GHST varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given GHST’s volatility, its current price can change by a large amount in a very short space of time. The market cap of Aavegotchi is equal to the price of GHST multiplied by the number of GHST in the circulating supply.

Aavegotchi Price FAQ

How is the Price of GHST Calculated?

GHST’s price at any given time is decided by the balance of circulating supply and demand on exchanges. When more people are buying GHST than selling it, the price goes up, and when more are selling than buying, the current price goes down.

Why is the Price of GHST Different on Different Exchanges?

GHST’s price is based purely on trading as there is no standard global Aavegotchi price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affects the price on different crypto exchanges.

What will GHST be Worth in the Future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future Aavegotchi value. However, if the Aavegotchi gaming ecosystem becomes increasingly popular with a large volume of new users, GHST price could see an increase.

Conclusion

The price of GHST has not yet experienced much significant turbulence, going from lows below $0.55 to highs just over the $2 mark. However, it is important to consider that Aavegotchi is just at the beginning of its journey and that there may be future volatility yet to come. The demand for Aavegotchi, a key factor influencing Aavegotchi price, is likely to depend as much on take-up by players and stakers, as it is on broader trends in the crypto markets.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the Aavegotchi universe and cryptocurrencies!