Sandbox is on the verge of a significant event, with a scheduled token unlock worth approximately $94.42 million (around ZAR 1.78 billion) set for Valentine’s Day, February 14. This development comes as the SAND token exhibits a bearish momentum, with expectations of an influx of 205.59 million tokens into the circulating supply potentially exacerbating the downtrend.
Key on-chain indicators, including Active Addresses and Volume, have been trending downwards since the beginning of January, according to Santiment data. This decline in user engagement and demand suggests a bearish outlook for the metaverse token.
Additionally, a noticeable increase in Sandbox’s Supply on Exchanges, from 380.3 million to 466.05 million tokens as of the latest data, indicates a growing reserve of SAND on exchange wallets. Such a reserve points towards a possible surge in selling pressure, which could further depress the token’s price in the market.
The upcoming token unlock event on February 14, involving an estimated $94.42 million in SAND tokens, closely mirrors a previous unlock in August 2023, where $130.26 million (approximately ZAR 2.45 billion) worth of SAND was released, leading to a nearly 20% price drop. If this pattern repeats, the SAND token could see a similar decline, impacting investors and the broader metaverse market.
As of the current market standings, SAND trades at $0.4320 (around ZAR 8.14) on Binance. The scheduled token unlock, combined with the current on-chain metrics and previous market reactions, suggests a cautious approach for those invested in Sandbox, especially within the South African crypto community and beyond.
This event underscores the volatile nature of cryptocurrency investments, where significant token unlocks can lead to market adjustments. Investors and enthusiasts in South Africa and globally are keenly watching how this significant unlock will shape the Sandbox ecosystem and its token dynamics in the coming weeks.
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