Sandbox’s SAND Surges to 28-Month High Amid Ecosystem Developments and Whale Interest

Sandbox’s SAND has broken out of a multi-year lull amid the protocol’s ecosystem developments and renewed interest from whales.

The recent price action of Sandbox (SAND) has been nothing short of impressive, with the altcoin soaring over 40% to hit a 28-month high of $1.06 on Thursday, Dec. 5. This surge has propelled its market cap to over $2.27 billion at press time, marking a 57% increase over the past week.

What makes this rally even more remarkable is the long-term perspective: SAND has witnessed a staggering 173.6% surge in the past two weeks and an impressive 303% increase over the last month.

Accompanying this price surge is a noticeable uptick in daily trading volume and open interest in the futures market. SAND’s daily trading volume spiked by 95% over the past day, with over $4.1 billion worth of trades occurring within the last 24 hours.

Furthermore, data from CoinGlass indicates that open interest in the SAND futures market has surged by 19.87% over the previous day, reaching $228.58 million. This figure is significantly higher than the $32.39 million recorded in early November.

Key Drivers Behind SAND’s Rally

The recent price surge in SAND can be attributed to several key factors. One major catalyst was the announcement of two new Sandbox Improvement Proposals, namely SIP 16 and SIP 17, aimed at enhancing the platform’s content and user experience.

SIP 16 seeks funding for the development of Episode 2 of the popular survival horror game Deep Sea, while SIP 17 focuses on implementing a player inventory filter within the Game Client. These proposals are expected to introduce new features and improve the overall gameplay experience for users.

Additionally, the ongoing Alpha Season 4 has played a significant role in driving the momentum behind SAND. With the platform offering its largest-ever reward pool of $2.5 million in SAND, participants have the opportunity to earn rewards by completing quests and challenges designed in collaboration with major brands and franchises.

Whale Accumulation and Market Trends

Whales have also shown increased interest in SAND recently, as indicated by data from IntoTheBlock. Whale holder net flows have shifted from a net outflow of $2.2 billion worth of SAND tokens at the beginning of the month to a net inflow of $8.2 billion worth of tokens on Wednesday, Dec. 4.

While whale accumulation often prompts retail investors to follow suit, concerns about immediate selloffs are alleviated by the fact that around 50% of total addresses are still in a loss position. This suggests that holders may opt to wait for further price appreciation before considering selling their holdings.

Moreover, the resurgence of SAND is not an isolated event but part of a broader comeback in the metaverse crypto sector, which has experienced a significant downturn in the past. The sector’s market cap has surged by 5.29% over the past 24 hours, exceeding $30.68 billion, with trading activity also witnessing a substantial increase.

Overall, the recent rally in SAND reflects not only the protocol’s ecosystem developments but also the growing interest from whales and the broader market trend favoring metaverse cryptocurrencies.