Valve released a major update for Counter-Strike 2 (CS2), fundamentally reshaping the game’s long-standing skin economy. The introduction of a “knife crafting” system, officially known as a trade-up contract for knives and gloves, has sent shockwaves through the multi-million dollar digital item market on Steam and beyond.
What is the new CS2 knife crafting update?
The core change allows players to obtain highly sought-after knives and gloves through a new trade-up contract. By trading in five Covert (red) quality weapon skins from the same collection, players can now craft either a knife or gloves. Specifically, using five StatTrak Covert skins will result in a StatTrak knife, while five regular Covert skins yield a non-StatTrak knife or a pair of gloves. This provides a direct, albeit potentially costly, path to obtaining items previously only available through random case openings, significantly altering their accessibility and perceived rarity within the CS2 skin economy.
Immediate impact on Covert skin prices
The immediate consequence of the CS2 trade update was a dramatic surge in the price of Covert-quality weapon skins. Items like the AK-47 | Nightwish and AWP | Chromatic Aberration, now essential “crafting fuel,” saw their values skyrocket on the Steam Community Market and third-party sites. Demand soared as players and traders rushed to acquire the necessary five skins for the new trade-up contracts, leading to temporary shortages and inflated prices. Within the first 24 hours, popular Covert skins saw average price increases of around 30%. For example, a Minimal Wear AK-47 | Nightwish jumped approximately 29.7% to $135 USD, while a Factory New Glock-18 | Gold Toof rose 28.2% to $120 USD.
Knife and glove prices react sharply
Conversely, the value of existing knives and gloves experienced a significant, immediate drop. Because these rare items can now be directly crafted, their market exclusivity and perceived rarity diminished overnight. Prices for many popular knives plummeted between 20% and over 50% in the first day following the CS2 trade update. Examples include a Factory New Karambit | Doppler dropping 32% to around $740 USD, a Factory New Butterfly Knife | Fade falling 28% to $690 USD, and a Well-Worn Navaja Knife | Crimson Web crashing by 53% to $95 USD.
Crafted knives and gloves are untradable
A crucial detail accompanying the new system is that knives and gloves obtained through these trade-up contracts are currently untradable and cannot be sold on the Steam market. It is unclear if this restriction is intentional and permanent or a temporary measure by Valve. This limitation prevents newly crafted items from immediately flooding the market but adds another layer of complexity to the skin economy, impacting the long-term value proposition of crafting.
The CS2 trade update has injected significant volatility into both the official Steam Community Market and external trading platforms. The rapid shift in demand – up for Coverts, down for knives – has created a dynamic and unstable environment. Compounding this are Steam’s existing trade restrictions, notably the 7-day trade lock placed on items after they are traded between users. This policy inherently slows down the market, reduces immediate liquidity, and makes quick “flipping” or arbitrage strategies much more difficult, forcing traders to adapt. While the Steam market remains the primary hub, its ~15% transaction fees also influence pricing and behaviour.
Other changes in the October 2025 update
Beyond the economy-shaking trade-up changes, the CS2 update also reintroduced the official Retakes game mode, implemented improvements to matchmaking logic and performance, refined the user interface, and included adjustments to maps like Inferno.
A new era for the CS2 skin economy?
This CS2 trade update appears poised to permanently alter the landscape of skin trading. Covert skins have effectively become a new tier of currency, valued not just for their appearance but as key components for acquiring knives. While the increased accessibility of knives may please casual players, it has undoubtedly devalued the large inventories of long-time collectors and high-volume traders. Valve’s control over the market, particularly through trade restrictions on crafted items, suggests an attempt to manage the potential chaos, though the long-term equilibrium of the skin economy remains uncertain.
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