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Metaverse tokens gather losses, but SAND has a trick up its sleeve

2min Read

The staking and price trend of The Sandbox has declined over the years, but the team has introduced KYC to its staking process, irrespective of the current trend.

A sandcastle with The Sandbox logo, symbolizing the holders facing losses, while a magnifying glass hones in on the introduction of staking KYC. The sandcastle starts to crumble, representing the losses experienced by holders. In the background, symbols of KYC and staking highlight the introduced process. The scene conveys a sense of concern and scrutiny, utilizing contrasting colors and visual elements to emphasize the impact of the introduction of staking KYC on The Sandbox holders and the discussions within the cryptocurrency community about the potential reasons behind the losses and the implications of KYC on user participation and security measures within the platform.

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  • SAND HODLers were facing losses of over 90%.
  • The Sandbox introduced KYC for staking as staking declines.

Recent data indicated that both The Sandbox [SAND] and other metaverse tokens, such as Axie Infinity [AXS] and Decentraland [MANA], have shown unprofitable performance. Despite the SAND token’s lack of profitability, the team has introduced a new staking policy. 


Read The Sandbox’s [SAND] Price Prediction 2023-24


To get an accurate picture of the situation, we need to look at the state of SAND staking and its price movement in recent times.

SAND HODLers at a loss

Recent data from IntoTheBlock has revealed a challenging situation for The Sandbox token holders, with their investments showing significant losses. As of this writing, the loss percentage reached 93%, indicating that the value of SAND holdings had plummeted by over 90%.

The only token with a higher loss percentage was Axie Infinity at 95%.

To further emphasize the extent of the losses, a 365-day Market Value to Realized Value (MVRV) ratio on Santiment was consulted, confirming the negative trend. The 365-day MVRV ratio stood at over -33%, indicating that during this specific period, holders were experiencing losses of more than 30%.

The chart data also indicated that SAND holders had not experienced any profitable moments throughout this timeframe.

The Sandbox 365-day MVRV

Source: Santiment

The Sandbox introduces KYC staking

Despite the underwhelming performance of the SAND token, the team recently announced changes to the staking policy. As per their 3 August tweet, the staking process will now require KYC verification. This new policy will also impact how users claim earnings.

At the peak of its popularity in 2022, SAND saw the staking of over $200 million worth of tokens. However, the total staked amount plummeted to approximately $38 million, data from Dune Analytics indicated. This reflected a significant decrease in staking participation.

As of this writing, over 85.8 million SAND tokens were staked, while the total circulating supply of SAND was over 2 billion. These figures provide insights into the proportion of the circulating supply currently locked up through staking.

SAND-deep price trend

The daily timeframe chart of SAND revealed a concerning trend of decline. The token has experienced losses for two consecutive days, and the press time trading period marked the third day of decline.

SAND/USD price trend

Source: TradingView


How much are 1,10,100 SANDs worth today?


As of this writing, SAND was trading at approximately $0.4, registering a loss of less than 1% from its previous value.

The persistent price decline has also impacted SAND’s Relative Strength Index (RSI), pushing it below the critical level of 40. 

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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