The Sandbox [SAND]: Whales move away – are these changes the reason
- Large addresses have lost interest in SAND.
- Protocol performance took a hit while The Sandbox continued to make new collaborations.
The Sandbox [SAND], a virtual gaming world set in web3, has attracted many gaming enthusiasts to the crypto space in the past. However, with time, many addresses have lost faith in the SAND token due to the performance of its protocol.
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Whales swim away from the SAND
According to Santiment’s data, a large address moved around $250 million worth of SAND to a new address. There is a chance that the whale might sell a considerable amount of its tokens, given that the percentage of major addresses holding SAND had decreased in the last three months.
🐳 A known #TheSandbox whale emptied out its entire 409M $SAND ($250M in total) and moved to a new address today. This was the most coins moved since the asset's first week of existence in August, 2020. Today's $261M moved is the most moved in 7 months. https://t.co/VnAiYbN06Z pic.twitter.com/SOHbUk2OvO
— Santiment (@santimentfeed) March 28, 2023
If this whale does so, it could have a further negative impact on the price of SAND.
Despite the decline in prices of SAND, new addresses were not interested in buying the token at discounted rates at press time. This was indicated by SAND’s decreasing network growth, which suggested that activity from new addresses holding SAND had diminished.
The underperformance of The Sandbox could be a contributing factor to its disinterest. Recent data from DappRadar showed a decrease of 9.55% in the number of unique active wallets on the network in the last 30 days. Because of this reduced activity, there was a significant decline of 72.5% in the network’s transaction volume during the same period.
The buyers and the sellers
There was a decrease in both buyers and sellers of assets on The Sandbox, as reported by Dune Analytics. This caused the gaming platform to experience a significant drop in trading activity. However, at the time of reporting, the number of buyers on the protocol was higher than the number of sellers, accounting for 52% of all trades.
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However, The Sandbox is working on making the protocol more attractive to its users. In a recent tweet, the Sandbox protocol stated that it would collaborate with the famous fashion company Tommy Hilfiger to launch an NFT collection.
It remains to be seen whether Sandbox’s attempts to revive interest in the protocol will be successful.