According to WhaleStats, ETH whales have been paying closer attention to The Sandbox during the past 24 hours. Why is this crucial? This result implies that the network is undergoing a value flow and possibly increased demand for its capabilities.
Check the top 100 whales here: https://t.co/N5qqsCAH8j
— WhaleStats (tracking crypto whales) (@WhaleStats) January 21, 2023
In related news, The Sandbox also disclosed its NFT sales data for real estate, which showed a remarkable 180% increase year over year. At that time, it also claimed almost $1.4 billion in sales. With a land market cap of $167 million, The Sandbox ranks third after Decentraland and Otherside.
Virtual Real Estate #NFTs soared with $1.4B in sales & 180% YoY growth. @TheSandboxGame boasts $167M+ LAND Market Cap across all #metaverse platforms, proving the value and potential of virtual worlds in the NFT space.
— The Sandbox (@TheSandboxGame) January 20, 2023
The resurgence of ETH whale interest may have already occurred. The Sandbox’s NFT transaction volumes have demonstrated substantial growth over the previous six months.
Although SAND experienced strong demand for land and other NFTs in its marketplace, things were less than ideal in other respects. For instance, its market cap significantly decreased during the previous six months. This result more accurately reflects the generally unfavorable market environment.
Strong Bulls in SAND, But What Lies Ahead?
The market cap of The Sandbox has, however, made a strong comeback in the previous three weeks. This is seen in the price movement of SAND, which has been rising since the beginning of this month. Since its 12-month low, SAND has increased by roughly 118%. Despite being close to the 200-day MA, it is currently overbought.
Some indicators could signal the beginning of a bull pattern weakness. For instance, the supply held by top addresses experienced a slight increase at the beginning of this month, but it has been steadily declining since 19 January. This shows that the top addresses and whales are taking their money out following the recent surge.
Before it, the mean coin age had changed since the middle of the month, showing that SAND was being traded. In other words, more investors felt the urge to sell their positions, but this was insufficient to cause a significant decline.
If positive news and natural demand renew investor enthusiasm, SAND may maintain the run for longer. The rally might not last very long now that it is straddling the overbought level.