The Knife/Glove Trade-Up Update: What It Means for the CS2 Skin Market - And Why It Might Be Good Long-Term

Valve just dropped one of the most game-changing updates in Counter-Strike history:

You can now trade up five Covert skins into a knife or glove from the same collections.

This new mechanic has already sent waves through the market - glove and knife prices have dropped 40–50% overnight, and everyone’s asking:

“Are my skins doomed?”

Let’s take a deep breath, look at what actually changed, and explore why this could be healthy - even bullish - for the long-term CS2 economy.

What the update actually does

Before the patch:

  • You could only trade up 10 skins → 1 higher-tier skin (but never to knives/gloves).

  • Knives and gloves were only obtainable from cases.

Now:

  • You can trade up 5 Covert (red) skins → 1 Gold item (knife or glove)

  • The result depends on the collections of the inputs.
    Example: five Covert skins from Recoil, Dreams & Nightmares, and Snakebite can yield knives/gloves from those collections.

In simple terms:

👉 You can craft knives and gloves now

How big is the impact?

It’s estimated that there are roughly 5-8 million knives & gloves in circulation today.

CSFloat estimates there are about 20 million existing Covert skins, plus maybe 9 million more if you convert all lower tiers up.

Even if every single Covert was used for trade-ups, that’d create ~5.8M new Golds, doubling total supply.

Realistically, though:

  • Likely only a fraction of players will burn their Covert inventories.

  • Many valuable reds are too expensive to risk.

So the true increase is likely 20% - 30% - not 100%.

Why prices fell — and why they won’t stay there

The first 24 hours after any major supply shock = chaos. As of writing we are on day 2 and still seem like casuals, investors, and panic sellers rush to exit the market.

But here’s the key: demand hasn’t disappeared.

There are still tens of thousands of players who want to own their first knife - and now they finally can.

That’s why short-term volatility ≠ long-term collapse.

Think of it like a stock split:

  • More supply, yes.

But also more accessibility, more activity, and more liquidity.

Guesstimation on Supply & Prices

We’ve modeled the new system in a simple supply-demand framework (see below).
Even in extreme cases, prices flatten after ~−60%, not −100%. Our “damped elasticity” model accounts for the fact that collectors, traders, and new buyers step in when prices drop too far.
Feel free to join the discussion on X here.

Why this might be great for Counter-Strike long-term

  1. More affordable entry point: Thousands of players have never owned a knife or glove. Lower prices will onboard a new generation of collectors.

  2. Healthier trade volume: Cheaper knives = more trading activity = more life in the economy. We expect marketplaces, like GamerPay, to see increased volume even if prices are lower.

  3. Revival of mid-tier skins: Covert and Classified skins now have real utility again - they’re no longer just inventory fillers but ingredients for crafting knives. Imagine all the new content from creators from now on!

  4. Speculation opportunities: Some collections will become “meta” for crafting desirable golds (e.g., Pandoras, Vices or Butterfly gems). Smart traders will adapt fast and find value in under-priced reds.

  5. Market maturity: This is Valve’s way of stabilizing the top-end. Knife/glove prices had become inaccessible — this brings balance, not destruction.

Our take at GamerPay

Yes, prices dropped sharply. But the fundamentals of skin collecting - rarity, aesthetics, and flex - remain intact. If anything, this update:

  • Makes CS2’s economy more sustainable,

  • Brings new energy to trade-ups and crafting,

  • And reminds everyone that the market is alive and evolving.

We are of course very sorry for the traders and people that have lost quite a lot of money the past days, but we believe that for the private individual, the casual, this will mostly be a positive thing on the long run.

We’ll be watching collection-specific trends closely in the coming weeks - and will share more thoughts once we gathered such.

TL;DR

  • Knives & gloves can now be crafted using 5 x Covert skins.

  • Supply doubles only if everyone trades up everything - which won’t happen.

  • Expect lower entry prices, more trades, and new market dynamics.

  • Short-term chaos ≠ long-term death. On the contrary - long term this could greatly benefit the whole skin scene.

What do you think?

Are you planning to trade up to a knife or glove, or hold your Covert stash?
Join the discussion here and make sure to follow GamerPay on X (Twitter).

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