Yes, goblins have massively increased spawn rate when you have people nearby, higher chance with more. They have to be actually within a few screen range not just in the game.
GreyRook wrote:Pardon me, but what is a rainbow goblin? Is it a multiplayer only thing?
Be ready to have your herder staff with you and unlock a portal to rainbow island.
You will find about 10-20 goblins full of items and dyes to change clothing colors. I foun two times at arcane sanctuary when leveling in nightmare and one in hell.
Same. 400 goblins and a total of 650k monsters killed, zero rainbow goblin. I was mad at first but then I checked gobo leaderboard to roughly calculate the chance of rainbow goblin spawning and concluded RNG was just not on my side. Gave up weeks ago and now awaiting 2.0 to come.