- The Sandbox price has been in a strong bearish trend.
- Activity in its ecosystem has been in a downward trend.
The Sandbox price has been in a freefall in the past few months as concerns about the metaverse continue. SAND was trading at $0.5865, which was about 40% below the highest level this month. Its market cap has pulled back to about $879 million.
Is the metaverse dead?
The concept of the metaverse became incredibly popular in 2021. At the time, millions of people were spending hours in key metaverse platforms like Sandbox and Decentraland.
As a result, many technology companies started focusing on ways to take advantage of the industry. Facebook even changed its name to Meta Platforms as it sought to grow the industry. Nvidia launched a service known as Omniverse.
Meanwhile, users were ready to spend vast sums of money in the metaverse. At its peak, a user bought a virtual land in the Sandbox for more than $1 million. Thousands of users used to spend hours playing its Alpha season.
Recently, however, the metaverse has disappointed. Meta Platforms’s metaverse products have failed to gain traction. As a result, the company’s market cap has slumped to about $310 billion. Nvidia’s market valuation has lost over $200 billion in value.
Find out some of the best metaverse tokens.
The Sandbox has also seen its users dwindle. Data compiled by DappRadar shows that the number of transactions in its Ethereum ecosystem in the past 30 days were just 80. In the same period, the number of Unique Active Wallets (UAW) in 30 days was just 72. As shown below, the trend in its ecosystem has been significantly low.
The same is true with Sandbox’s NFT transactions. In the past 30 days, there have been 14,575 NFT sales in Sandbox while the volume has crashed by 15.6% to about $1.6 million.
On the other hand, across other chains, the number of UAW in the past 30 days was 12,021 while the volume has slumped by 47% to $33.3 million.
Sandbox price prediction
The four-hour chart shows that the SAND price has been in a strong bearish trend in the past few weeks. As it crashed, the coin moved below the important support level at $0.6955, which was the lowest level on October 13.
The coin remains below all moving averages while the Relative Strength Index (RSI) has moved below the neutral level of 50. Therefore, the Sandbox price will likely continue falling as sellers target the key support at $0.5494.
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