The gaming segment of the crypto market has seen better days. Sales are down 90% compared to the best months of 2022. Sector investments have also experienced a decline and are now performing worse in terms of the number of new jobs.
Image source: k33.com
The situation for users of the Sandbox metaverse is complicated by the upcoming release of 333 million SANDs worth a total of $134 million. The new coins are set to be distributed among users on 14 August.
Image source: token.unlocks.app
30% will be directed to the company's reserve to hold events, 32% will go to the project's team and consultants, and the rest will be credited to early investors and participants in previous promotions. Excluding the reserve, 236 million SANDs worth $94.4 million may be released immediately.
The previous unlock was held in February and resulted in a consequent price decline, completely offsetting January's growth. SAND has lost half its value from its February highs.
Image source: StormGain.com
In anticipation of another unlock and price decline, traders of perpetual futures are increasing their sell positions. This has put the funding rate at its lowest point in five months.
Image source: coinglass.com
Over the past 12 months, the volume of the platform's daily operations declined by 4.6 times to $132,000. And the number of unique addresses dropped thrice to 201. Rare activity bursts are seen during the events when additional NFT artefacts add value to rewards. Often, such investments are unjustified because of the drop in SAND's price and the time spent on tasks.
Image source: dappradar.com
With these inputs, an increase in circulating supply is likely to cause SAND's price to fall further.
StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)