Sandbox price trades sideways ahead of $88 million Valentine’s token unlock

Sandbox has scheduled a $88.31 million unlock on February 14. The token is currently in a downward trend and further decline is likely with the likely release of 205.59 million tokens in SAND’s circulating supply. 

On-chain metrics support a bearish thesis for SAND and further correction in the metaverse token is likely. 

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Sandbox on-chain metrics, scheduled events suggest SAND price correction is likely

Sandbox’s Active Addresses and Volume, two metrics used to determine user activity and the token’s demand among market participants, signal a correction in SAND. Since January 1, SAND’s Active Addresses and Volume have been in a downward trend, as seen in the Santiment chart below. 

This indicates that user activity in Sandbox has dropped significantly, in the same timeframe. 

SAND Active Addresses and Volume. Source: Santiment 

Now turning to Sandbox’s Supply on Exchanges, this metric climbed from 380.3 million on February 1 to 466.05 million on Wednesday, at the time of writing. This marks a steep increase in SAND reserves on exchange wallets, meaning there is a relatively large volume of Sandbox tokens likely to be sold. There is a possibility of an increase in selling pressure on SAND, and this could drive the metaverse’s price lower. 

Sandbox Supply on Exchanges and Price. Source: Santiment 

According to data from tokenunlocks.app, the unlock of $88.31 million in SAND tokens is scheduled for February 14. A similar event where $130.26 million worth of the asset was unlocked in August 2023, drove the price down by nearly 20%. If the trend repeats, SAND price could suffer a nearly 20% decline in its price, within a week of the unlock. 

SAND/USDT 1-day chart

At the time of writing, SAND price is $0.4320 on Binance. 

(This story was corrected on February 7 at 14:38 GMT to say that the SAND unlock is worth $88.31 million, not $94.42.)