The Sandbox (SAND) project has been experiencing a rough ride in recent weeks, with its price remaining below $0.65 since March 24. The dwindling number of active users and profit booking by whales are causing significant stumbling blocks. What does this mean for the future of the SAND price?
The Sandbox is a metaverse project that has been generating a lot of buzz in the cryptocurrency space. However, the hype around virtual worlds seems to have fizzled out, and the SAND price has been struggling to maintain momentum.
To counteract this, The Sandbox team has announced new partnerships ahead of the Mega City 3 launch later this month. They are hoping to partner with over 40 brands to trigger their next growth phase.
Despite these efforts, the inconsistent number of daily active users is slowing down The Sandbox’s resurgence. Since March 31, the project has failed to attract 1,000 daily users. According to data provided by Santiment, as of April 6, only 730 users were recorded.
The historical data shows that when active users interacting on the network exceed 1,000, the SAND price tends to increase. If The Sandbox cannot attract new users and sustain the mind-share of its existing gamers, the SAND price could remain in the doldrums.
Another factor contributing to the bearish outlook is the mild sell-off among a cohort of crypto whales. Whales holding balances of 1,000,000 to 10 million coins have offloaded 49 million SAND tokens, as reported by Santiment.
They started selling once the price dropped below $0.60 on March 27 and have now sold $31 million worth of SAND as of April 7. If this sell trend continues, they could flood the market with huge supplies of tokens and cause the price to crash further.