Sandbox [SAND] investors must keep an eye out for these ‘LAND’mines in Q4.

A new Messari report discovered that The Sandbox [SAND] was experiencing market disinterest. In Q3, there was a general decline in interest in non-fungible tokens (NFTs) and tokenized blockchain gaming, resulting in a series of declines for the blockchain.

The Sandbox, according to NFTGo, is a community-driven platform with a map made up of 166,464 LANDS. LANDS on The Sandbox are digital properties that can be owned and monetized within the virtual world of The Sandbox. Messari discovered some disappointing facts in its Q3 assessment as a result of its severe disinterest in owning this category of volatile asset.


90 days of distress

The report found that only 165 LAND parcels were minted within the 90-day period. This represented a 95.4% drop from the 3,554 LAND parcels that were minted in Q2. According to Messari,

“The rate of mints has slowed dramatically over the past quarter, as public LAND mints have effectively been paused in the face of recent market turbulence. The subsequent loss in user appetite for digital assets — a phenomenon experienced across the broader crypto market — has also had an effect.”

Furthermore, with the 165 LAND parcels minted in Q3, primary LAND sales volume on The Sandbox within that period stood at a total of $600,000. This was a 93% decline from the $7.7 million made in sales volume in Q2. On what might have been responsible for the gross decline, Messari opined,

“This decline is at least partially attributable to the ~39% QoQ collapse in average USD/SAND conversion rate, with SAND ending the quarter at $0.85 and averaging $1.11 throughout Q3.”

Source: Messari

Furthermore, the count of secondary sales of LAND parcels made within the same period fell by 47%, Messari reported. With just 3,455 secondary sales transactions completed in Q3, the sales volume also dropped by 68.1%.

“The $8.8 million in Q3’22 volume is actually the first YoY decline in quarterly secondary sales that has been recorded, given the rapid rise in 2021,” Messari stated.

Source: Messari

In addition to this, the count of distinct wallets that purchased LANDS on The Sandbox in Q3 fell by 42%. The year so far has been marked by a decline in the count of Active LAND buyers. Messari also found that the recent decline in LAND buyers “follows last quarter’s 57% QoQ decrease from the 7,805 active buyers recorded in Q1‘22 and well below the ~15,000 distinct wallet addresses recorded during the Q4‘21 peak.”

Source: Messari

Look, so you do not get buried

In October, the price per SAND rallied by 5%, data from CoinMarketCap showed. Since Gucci went live on The Sandbox on 27 October, the price of the metaverse token witnessed a 14% surge.

The debut of the fashion giant into its virtual world caused SAND to be overbought by press time. As of this writing, its Money Flow Index (MFI) was 86, while its Relative Strength Index (RSI) was 65. However, a price reversal typically follows these overbought highs; hence caution is advised.

Source: TradingView

Data from CoinMarketCap also showed that SAND’s price was up by 2% in the last 24 hours while its trading volume was down by over 50%. This indicated that a price correction from its 30-day high was imminent.

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