NFTs keep The SandBox afloat in Q2 as total revenue falls
- The mints and primary sales of The SandBox climbed in Q2.
- However, secondary sales and revenue suffered a decline during the same period.
In Q2 2023, The SandBox [SAND] defied the odds with impressive growth in non-fungible tokens (NFTs) mints and primary sales within its ecosystem, Messari found in its new report. This growth occurred despite the decline in interest in metaverse-based projects and NFTs, which plagued the year’s first half.
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The gaming metaverse offers a variety of in-game NFTs broadly grouped into LAND and non-LAND NFTs. According to NFTGo, The Sandbox comprises a map made up of 166,464 LANDS. LANDS on The Sandbox refers to digital land that can be owned and monetized within The Sandbox’s virtual world.
Non-LAND assets include ESTATE, ASSET, GEM, CATALYST, and Game Maker.
In its report titled “State of The Sandbox Q2 2023,” the on-chain analytics noted that following the ecosystem-wide decline experienced in Q1, the count of non-LAND buyers, non-LAND minted, and LAND minted rallied between April and June.
During that period, the number of LAND NFTs minted increased by 61%. This resulted in a 29% growth in LAND primary sales during the quarter under review.
While the total LAND sales volume exceeded that of non-LAND, Messari stated,
“Non-LAND primary sale volume grew by 30% and was greater than any individual LAND sale type.”
Onward NFTs sales and revenue took a hit
While primary sales surged, secondary sales of these NFTs on marketplaces such as OpenSea and LooksRare experienced a dip in Q2. According to Messari:
“Both LAND and non-LAND assets have suffered secondary trading declines throughout each quarter over the past year. While the drop in floor price can contribute to lower volume, the ongoing poor market conditions may have also suppressed secondary activity.”
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Likewise, the project’s total revenue suffered a 15% decline quarter-over-quarter (QoQ). The SandBox’s revenue is derived from its NFTs’ primary sale volume and royalty revenue (5% of the total secondary sale volume.
Per the report:
“This quarter added another exception as non-LAND primary sales accounted for 37% of the total revenue accrued to The Sandbox. The rise in non-LAND primary sale dominance came amidst QoQ declines in non-LAND royalty (–28%) and LAND royalty (–42%), private (–40%), auction (–50%), and primary sales (–29%). The increases in non-LAND primary sale volume (30%+) and ESTATE volume (+18%) led the total revenue to only decline by 15% QoQ.”