Can SAND’s performance in 2022 provide some forward-looking insights?

  • The sandbox and its parent token, SAND, have had a very slow year
  • NFT deals in 2022 showed a decrease in popularity compared to 2021

Sandbox exploded onto the blockchain and crypto scene in the past year as one of the most promising metaverse projects. Fast forward to the present and the excitement has faded, while its local icon is pulled sharply.

Read Sandl├ądan [SAND] Price forecast 2023-2024

The year 2022 has not been particularly favorable for the entire crypto market. But now that the year is almost over, will we see a resurgence of hype and growth for Sandbox, as well as SAND? Perhaps The Sandbox’s performance in 2022 could offer some perspective.

Sandbox NFTs require

The sandbox recorded strong demand for NFTs in 2021 and this theme was noted throughout the year. But things turned out differently this year as the demand for NFTs fell sharply. The second half of the year has so far seen lower NFT trading volume than in the first half of the year.

At peak NFT demand, The Sandbox captured more than $26 million in one-day NFT trading volume in February. For perspective, NFT trading volumes have struggled to surpass $500,000 on most days since August. A sign of how low NFT demand has been over the past 12 months.

A look at the number of unique active addresses that have purchased NFTs in the last 12 months revealed some interesting results. For example, unique addresses that purchased NFTs worth more than $100,000 had more unique addresses that bought NFTs worth less than $1,000.

Sandbox NFT statistics

Source: feeling

In addition, the graph also confirmed the decline in demand over the past 12 months. The number of addresses decreased, but there was notable activity. Speaking of network activity, the number of transactions and transaction volume peaked between November 2021 and March 2022.

Sandbox network activity

Source: feeling

Is it time to leave the sand?

Transaction volume reached $1.39 billion in February 2022. Transaction volume has since fallen to an average of less than $20 million in the second half of 2022. The number of transactions has been more active, especially during periods of high volatility.

For example, the number of SAND transactions recorded a significant peak in the second week of November this year.

All of the above notes including the volume downgrade and network activity downturn reflected market conditions. Many crypto projects also went through the same thing during the market crash.

The Sandbox’s strong initial performance may have been bolstered by the metaverse hype. Will we see a pickup in demand when the next bull market starts?

The fact that Sandbox still has some volume (albeit a small part of its former glory) can be seen as a good sign. However, market cycles bring about changes in investors’ appetites and preferences. It remains to be seen if the market will still have a preference for SAND and The Sandbox.

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