CS2 skins market begins recovery, but bigger crash could be coming soon

Last week the $6 billion Counter-Strike 2 skins market was rocked by the October 22nd update, which introduced the ability for players to trade up five Covert (red) skins for a knife or pair of gloves.

This update led to a freefall in skin prices, most considerably affecting knives given their sharp drop in rarity. In a matter of 38 hours after the update went live, the market cap was cut in half, dropped from roughly $6 billion in value to $3 billion according to Pricempire.com.

In the days since, the market has begun to stabilize, climbing back up to over $4 billion as of a couple of days ago. But it might end up being much worse. Trade-up knives are tradable and marketable after one week, and tomorrow the first batch of trade-up knives can officially be listed on the Steam market.

With an unknown but certainly massive amount of new knives hitting the Steam market tomorrow before continuing to steadily trickle in over time, the laws of supply and demand say that prices will almost certainly drop again. And with knives abundant and cheaper, Covert skins could also see a price drop after their post-update spike, as buying a new knife directly might be a better option.

For those that invested thousands into skin inventories, it's been a turbulent week, but it might just get worse starting tomorrow.