The SAND token price has rallied 40 percent to a 28-month high as new ecosystem developments and whale interest in the altcoin climb.
SAND rose to $1.06, lifting its market capitalization past $2.27 billion. It’s a big price rise, but the market is already up 57% in the past seven days alone. As it has edged up 173.6% in the past two weeks and 303% in the past month, that growth is showing no signs of letting up.
Price gains are only one symptom of the rally, for trading volumes are also rising, and there is growing interest in the futures market. In the last 24 hours, SAND has recorded a 95% increase in daily trading volume to more than $4.1bn in trades made in the past 24 hours. Data from CoinGlass also showed an increase of 19.87 percent in open interest in SAND futures, with the rise in open interest reaching $228.585 million, up from a feeble $32.395 million in early November.
Why Is SAND Rising?
The two biggest new developments on Sandbox are the sole reasons for its recent gains. On do 5, the project announced two Sandbox Improvement Proposals (SIPs) to help improve the user experience. Deep Sea is a survival horror game, and SIP 16 is looking for €80,000 to support the development of its second (and final) episode, Episode 2.
https://twitter.com/TheSandboxDAO/status/1864390910567698722
The new features in this proposal are geared towards improving user gameplay experience. On the other hand, SIP 17 suggests bringing in the player inventory filter to the Game Client to help players better manage their equipment.
Alpha Season 4 also has been providing a nice boost to growing SAND momentum. The reoccurring event has the platform’s largest generated reward pool thus far, with $2.5 million SAND tokens being up for grabs. In addition to the quests and challenges seen here created in collaboration with major brands like Playboy, Voice, and Hellboy, this initiative also happens to be free.
https://twitter.com/TheSandboxGame/status/1844021287460511865
Whales Accumulate SAND Tokens
While herd accumulation of SAND tokens by whales isn’t new, it has become a hot topic of the crypto community in recent days. That said, IntoTheBlock shows data that whale holder net flows switched dramatically from a net outflow of $2.2 billion worth of SAND at the beginning of December to a net inflow of $8.2 billion by Dec. 4.
Retail investors tend to fear of missing out (FOMO) effect once triggered by whale accumulation and are usually willing to copy other investors to meet the opportunity of future price gains. With such a tremendous infusion of capital to the SAND ledger from huge holders, one out of two SAND holders is in the red. This balance implies that selling off may be less urgent for these holders since they are sitting on the parameters to trigger a sale when they see a spike in price.
The rise of SAND is part of a wider bull run in the metaverse sector, which had been battered hard in March. For the past 24 hours, this metaverse crypto sector market cap has spiked by 5.29% and currently sits at over $30.68 billion. The rise in market activity has also been portrayed by a 64.5 percent hike in trading volume across metaverse assets.
During the same period, other notable metaverse tokens, such as Render and Stacks, have also seen strong double-digit gains.
Along with the bullish sentiment of SAND and the increasing influence of the whale, SAND’s performance may mean that metaverse-related crypto assets will experience a wider recovery and will grow sustainably through 2025.
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