Can SAND’s performance of 2022 offer some forward-looking insights

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  • The Sand­box and its native token SAND wit­ness an extreme­ly slow year
  • NFT trades in 2022 wit­nessed dimin­ished pop­u­lar­i­ty as com­pared to 2021 

The Sand­box burst into the blokchain and cryp­to scene last year as one of the most promis­ing meta­verse projects. Fast for­ward to the present and the excite­ment has died down, while its native token is heav­i­ly drawn down.

Read The Sandbox’s [SAND] price pre­dic­tion 2023–2024

The year 2022 has notably not been favor­able for the entire cryp­to mar­ket. But now that the year is almost con­clud­ing, will we see a resur­gence of meta­verse hype and growth for The Sand­box, as well as SAND? Per­haps The Sandbox’s per­for­mance in 2022 may offer some perspective.

The Sandbox’s NFTs demand

The Sand­box reg­is­tered strong NFT demand in 2021 and this theme was observed through­out the year. How­ev­er, things turned out dif­fer­ent this year as demand for NFTs dropped off sharply. The sec­ond half of the year has so far had low­er NFT trades vol­ume than it did in the first half.

The Sandbox NFT trades volume

At the height of NFT demand, The Sand­box com­mand­ed over $26 mil­lion in a sin­gle day’s NFT trades vol­ume in Feb­ru­ary. For per­spec­tive, its NFT trades vol­umes strug­gled to cross above $500,000 on most days since August. A sign of how far the NFT demand sunk in the last 12 months.

A look at the amount of unique active address­es that bought NFTs in the last 12 months also revealed some inter­est­ing find­ings. For exam­ple, unique address­es buy­ing NFTs worth over $100,000 were more than unique address­es buy­ing NFTs worth less than $1,000.

The Sandbox NFT metrics

Source: San­ti­ment

Fur­ther­more, the chart giv­en also con­firmed the demand drop in the last 12 months. The num­ber of address­es wit­nessed a drop but there was some notable activ­i­ty tak­ing place. Speak­ing of net­work activ­i­ty, both trans­ac­tion count and trans­ac­tion vol­ume were high­est between Novem­ber 2021 and March 2022.

The Sandbox network activity

Source: San­ti­ment

Is it time to let go of SAND?

Trans­ac­tion vol­ume tipped the scales at $1.39 bil­lion in Feb­ru­ary 2022. The trans­ac­tion vol­ume has since then dropped to an aver­age of below $20 mil­lion in H2, 2022. Trans­ac­tion count has been more active espe­cial­ly dur­ing peri­ods of high­er volatility.

For exam­ple, SAND’s trans­ac­tion count reg­is­tered a large spike in the sec­ond week of Novem­ber this year.

All the above obser­va­tions includ­ing the vol­ume drop and low­er net­work activ­i­ty reflect­ed the state of the mar­ket. Many cryp­to projects have also gone through the same dur­ing the mar­ket crash.

The Sandbox’s strong ini­tial per­for­mance may have had a leg-up cour­tesy of the meta­verse hype. Will we see a resur­gence of demand once the next bull mar­ket commences?

The fact that The Sand­box still com­mands some vol­ume (albeit a frac­tion of its for­mer glo­ry) could be con­sid­ered as a good sign. How­ev­er, mar­ket cycles do bring about changes in investor appetite and pref­er­ence. It remains to be seen whether the mar­ket will still have a pref­er­ence for SAND and The Sandbox.

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