- SAND HODLers were facing losses of over 90%.
- The Sandbox introduced KYC for staking as staking declines.
Recent data indicated that both The Sandbox [SAND] and other metaverse tokens, such as Axie Infinity [AXS] and Decentraland [MANA], have shown unprofitable performance. Despite the SAND token’s lack of profitability, the team has introduced a new staking policy.
Read The Sandbox’s [SAND] Price Prediction 2023-24
To get an accurate picture of the situation, we need to look at the state of SAND staking and its price movement in recent times.
SAND HODLers at a loss
Recent data from IntoTheBlock has revealed a challenging situation for The Sandbox token holders, with their investments showing significant losses. As of this writing, the loss percentage reached 93%, indicating that the value of SAND holdings had plummeted by over 90%.
The only token with a higher loss percentage was Axie Infinity at 95%.
To further emphasize the extent of the losses, a 365-day Market Value to Realized Value (MVRV) ratio on Santiment was consulted, confirming the negative trend. The 365-day MVRV ratio stood at over -33%, indicating that during this specific period, holders were experiencing losses of more than 30%.
The chart data also indicated that SAND holders had not experienced any profitable moments throughout this timeframe.
Source: Santiment
The Sandbox introduces KYC staking
Despite the underwhelming performance of the SAND token, the team recently announced changes to the staking policy. As per their 3 August tweet, the staking process will now require KYC verification. This new policy will also impact how users claim earnings.
🔒 To enhance user security and compliance, we have implemented KYC verification for our staking process. Our goal is to ensure that our users’ accounts are verified before they can participate in staking or claim their earnings.
Unverified users can still withdraw their $SAND,…
— The Sandbox (@TheSandboxGame) August 3, 2023
At the peak of its popularity in 2022, SAND saw the staking of over $200 million worth of tokens. However, the total staked amount plummeted to approximately $38 million, data from Dune Analytics indicated. This reflected a significant decrease in staking participation.
As of this writing, over 85.8 million SAND tokens were staked, while the total circulating supply of SAND was over 2 billion. These figures provide insights into the proportion of the circulating supply currently locked up through staking.
SAND-deep price trend
The daily timeframe chart of SAND revealed a concerning trend of decline. The token has experienced losses for two consecutive days, and the press time trading period marked the third day of decline.
Source: TradingView
How much are 1,10,100 SANDs worth today?
As of this writing, SAND was trading at approximately $0.4, registering a loss of less than 1% from its previous value.
The persistent price decline has also impacted SAND’s Relative Strength Index (RSI), pushing it below the critical level of 40.
