“How do we make it rain at the beach?” asked the CEO of the gaming company, The Sandbox.
“Well, we throw some sand dollars”, the fortune teller said.
According to Arthur Madrid, CEO, and Co-Founder of The Sandbox:
“Web3 technology is rapidly evolving and we believe The Sandbox Uruguay will help us to onboard millions of users through their expertise in web design and user flow… Uruguay is a fantastic place to invest in technology and we see a new generation of developers who want to rethink the way we are using and owning our data through the open metaverse.”
Following the announcement on 19 May, The Sandbox’s Native token, SAND rallied up by 12% during intraday trading. In the last 24 hours, the token declined merely by 1%. Let’s also take a look at the performance of the token in the last two days.
The spotting of a Bullish Divergence
The SAND token stood at $1.29 at the time of press, after recording a 4% spike in price over the past two days. The market capitalization for the token for the period under the review also revealed a movement from $1.51 billion to $1.58 billion.
Similarly, in the last 24 hours, the trading volume for the SAND token recorded a 151% spike. With a bullish movement in price, the spike in trading volume is indicative of increased accumulation by holders of SAND in the last 24 hours.
Further to this, the position of the MACD on the price charts showed increased buying pressure at the time of writing. With the MACD line crossing the trend line in an upward direction, the bulls attempted to push up the price of SAND.
Every coin has two sides…
Contrary to the aforementioned information of the token making some strides, on-chain analysis revealed that within the period, the news of the acquisition had little or no impact on the performance of the token.
On a social front, the announcement of the acquisition led to a spike in the social dominance of the SAND token. In the past two days, the token recorded a 312% growth in its social dominance. However, the attempt to make a spike in social volume on 20 May was followed by a correction pushing the index for the metric downward. In the given two-day window period, the token recorded an 18% growth in its social volume.
Similarly, the token recorded a spike in the number of unique addresses transacting SAND on a daily basis. Following the acquisition, the daily active addresses on the SAND network grew by 4%.
However, whales appeared to have accumulated less of the token following the news of the acquisition. For transactions greater than $1 million, the count dropped by 75%. Furthermore, for transactions greater than $100k, the overall transaction count dropped by 56% in the last two days.