The price of Sandbox (SAND) has been struggling to stay above $0.65 since March 24. With decreasing daily active users and a sell-off by crypto whales, the SAND price could drop further.
As the hype around virtual worlds and metaverse projects fades, The Sandbox has announced over 40 partnerships to try and jumpstart its upcoming Mega City 3 launch later this month.
However, the inconsistent daily active users on the platform have been a hindrance to the resurgence of the SAND price. The project has failed to attract 1,000 daily users since March 31, with only 730 users recorded on April 6.
Historically, the SAND price increases when active users exceed 1,000, making it difficult for the price to gain traction without an increase in users.
Adding to the bearish outlook is the sell-off by crypto whales holding balances of 1,000,000 to 10 million coins. These whales have offloaded 49 million SAND tokens since the price dropped below $0.60 on March 27. As of April 7, they have sold $31 million worth of SAND, indicating a possible further crash in the price if this sell trend continues.
The future of the SAND price remains uncertain, with a significant increase in daily active users and a halt to the sell-off by crypto whales needed for a potential price surge.
As the metaverse hype fizzles, The Sandbox will need to find new ways to attract and retain users to keep the project and the SAND price afloat.
James Wilson is a crypto writer and researcher with over 5 years of experience in the industry. He is a graduate of the University of California, Berkeley, where he studied computer science and economics. After graduating, he worked as a software engineer at a major tech company before transitioning to a career in crypto.
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