Valve has released a major update for Counter-Strike 2 (CS2) that fundamentally reshapes the game's long-standing skin economy. The launch of the “Knife Crafting” system (formally known as the Knife and Glove Trade-in Contract) 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 will allow players to acquire highly sought-after knives and gloves through new trade-in contracts. By trading in five stealth (red) quality weapon skins from the same series, players can now craft a knife or gloves. Specifically, using five StatTrak Covert skins will produce a StatTrak knife, while five regular Covert skins will produce a non-StatTrak knife or a pair of gloves. This provides a direct, but potentially expensive, route to items that were previously only available through random loot boxes, significantly changing their accessibility and rarity in CS2's skin economy.
Direct impact on concealed skin prices
The price of Stealth quality weapon skins has increased dramatically as a direct result of the CS2 trading update. Items like the AK-47 | Nightwish and AWP | Chroma are now essential “crafting fuel”, with their values skyrocketing on the Steam Community Market and third-party sites. Demand surged, leading to temporary shortages and price increases as players and traders rushed to purchase the five skins required for the new trade-in contract. In the first 24 hours, the average price of the popular stealth skin increased by around 30%. For example, a lightly worn AK-47 | Nightwish is up about 29.7% to $135, while a factory-new Glock-18 | Gold Toof is up 28.2% to $120.
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Knife and glove prices react sharply
Instead, the value of existing knives and gloves immediately dropped significantly. Since these rare items can now be crafted directly, their market exclusivity and rarity disappear overnight. On the first day after the CS2 trading update, the prices of many popular knives plummeted by anywhere from 20% to more than 50%. Examples include a factory-new Karambit | Brand new butterfly knife Doppler down 32% to around $740 | Fade down 28% to $690, and a beat-up Navaja knife | Crimson Web down 53% to $95.
Crafted knives and gloves cannot be traded
A key detail of the new system is that knives and gloves obtained through these trade-in contracts are currently untradeable and cannot be sold on the Steam Market. It's unclear whether this restriction is intentional, permanent, or a temporary measure by Valve. This restriction prevents newly crafted items from immediately flooding the market, but adds a layer of complexity to the skin economy, impacting the long-term value proposition of crafting.
The CS2 trading update brings huge volatility to the official Steam Community Market and external trading platforms. Rapid changes in demand—up for concealed knives, down for knives—create a dynamic and unstable environment. Adding to the problem are Steam's existing transaction restrictions, specifically the seven-day transaction lock after users trade items between users. This policy would essentially slow down the market, reduce immediate liquidity, and make it more difficult to quickly “flip” or arbitrage strategies, forcing traders to adapt. While the Steam Marketplace remains the main hub, its roughly 15% transaction fees also influence pricing and behavior.
Other changes in the October 2025 update
In addition to the economy-shaking trading changes, the CS2 update also reintroduces the official Retakes game mode, makes improvements to matchmaking logic and performance, refines the user interface, and includes tweaks to maps like Inferno.
A new era of CS2 skin economy?
This CS2 trading update looks set to change the skin trading landscape forever. Covert skins have effectively become a new currency, valued not just for their appearance but as a key component in acquiring knives. While the increased accessibility of knives may please casual players, it certainly devalues large inventories of long-time collectors and high-volume dealers. Valve's control of the market, particularly through trade restrictions on handmade items, suggests it's trying to control potential chaos, although the long-term balance of the skin economy remains uncertain.
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