- SAND price has been in a strong bearish trend this year.
- The number of active users in its ecosystem has crashed.
The Sandbox price has been in a strong bearish trend in the past few months as interest in the metaverse faded. SAND has dropped by more than 84% this year, bringing its total market cap to over $1.2 billion, making it the 43rd biggest cryptocurrency in the world.
Sandbox user growth collapses
The metaverse became one of the most hyped themes in the blockchain industry in 2021. It became one of the fastest-growing industries in the sector. As a result, investors piled to the metaverse, with projects like Axie Infinity, Decentraland, and the Sandbox. Facebook also changed its name to Meta Platforms.
The Sandbox became one of the biggest projects in the metaverse and NFT industries. At the time, the developers raised millions of dollars from the likes of Softbank. And this year, the company was in talks to raise a whopping $400 million at a $4 billion. The Sandbox also saw people spend millions of dollars in virtual land.
Learn more about how to buy Sandbox.
This year, however, activity in The Sandbox, Decentraland, and Axie Infinity have all crashed. According to DappRadar, the number of users in its ecosystem in the past 30 days crashed by more than 17% to 10.3k. The network has a balance of over $87 million despite the ongoing Alpha Season 3.
The Sandbox’s transactions in the past 30 days totaled 71 while the volume in its chain has crashed by $102.7k. Therefore, there are concerns about how a network whose user growth has crashed is valued at over $1.2 billion.
The same trend is true for Decentraland, a network that became a leading player in the metaverse. The network has had 1.5k users in the past 30 days and has a balance of $25k.
SAND price prediction
The daily chart shows that the SAND price has been in a strong bearish trend in the past few months. Along the way, the coin has crashed all moving averages, which is a sign that sellers are in control. It is approaching the important support level at $0.7372, which was the lowest level this year.
The Relative Strength Index (RSI) has formed a bullish divergence pattern. It remains below the descending trendline shown in green. Therefore, The Sandbox price will likely continue falling as sellers target the next key support at $0.6250, which is about 25% below the current level.
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