Can SAND’s performance in 2022 offer forward-looking insights

Can SAND’s performance in 2022 offer forward-looking insights

  • Sandbox and its native token SAND are having an extremely slow year
  • NFT transactions in 2022 saw a decline in popularity compared to 2021

Sandbox burst onto the blockchain 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 his native token is pulled hard down.

Read the sandbox [SAND] price prediction 2023-2024

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

Sandbox NFTs require

Sandbox saw strong NFT demand in 2021 and this theme was seen throughout the year. However, things turned out differently this year as demand for NFTs fell sharply. The second half of the year has so far seen a lower NFT transaction volume than the first half.

Sandbox NFT transaction volume

At the height of NFT demand, The Sandbox ordered over $26 million in NFT trading volume in a single day in February. For perspective, its NFT trading volumes have struggled to top $500,000 on most days since August. A sign of the extent of the decline in NFT demand over the past 12 months.

A review of the number of unique active addresses that purchased NFTs over the past 12 months also revealed some interesting results. For example, unique addresses buying NFTs worth more than $100,000 were more than unique addresses buying NFTs worth less than $1,000.

NFT Sandbox Metrics

Source: Santiment

In addition, the chart presented also confirmed the decline in demand over the past 12 months. The number of addresses was down, but there was noticeable activity. Speaking of network activity, the number and volume of transactions was highest between November 2021 and March 2022.

Sandbox network activity

Source: Santiment

Is it time to ditch SAND?

Transaction volume tipped the scales at $1.39 billion in February 2022. Transaction volume has since fallen to an average below $20 million in the second half of 2022. The number of transactions has been more active , especially during periods of higher volatility.

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

All of the above observations, including lower volume and lower network activity, reflected the state of the market. Many crypto projects also experienced the same during the stock market crash.

The Sandbox’s initial strong performance may have had a head start thanks to the metaverse hype. Will we see a resurgence in demand once the next bull market begins?

The fact that The Sandbox still commands some volume (albeit a fraction of its former glory) could be seen as a good sign. However, market cycles lead to changes in investors’ appetites and preferences. It remains to be seen whether the market will always have a preference for SAND and The Sandbox.

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