The Sandbox (SAND) Booms on News of $93M Funding
A new class of tokens keeps making notable contributions to crypto space. The assets of blockchain-based games are having a day in the sun with new price records. Notably, The Sandbox (SAND) reached new peak levels after establishing itself as one of the top play to earn games in a growing industry of a new blockchain use case.
SAND rose to a peak of $3.26 late on Monday, retreated and started a new expansion at around $2.65. Curiously, the asset reported more than $8.4B in trading volumes, lining up with some of the largest coins. To compare, DeFi tokens like THORChain (RUNE) still trade with volumes below $200M per day.
The rise of SAND also follows a recent Binance trading competition, which incentivized a focus on this token. The other factor boosting SAND is that the game’s popularity and its tokens may be catching up with Axie Infinity (AXS).
Why SAND is So Popular
One of the reasons for the success of SAND are the multiple highly liquid Binance exchange trading pairs. Due to the unusual hype, SAND displaced Shiba Inu (SHIB) and became the second most-traded asset on Binance International.
The other reason is the popularity of The Sandbox game, which shares popularity between US-based players and a large community in Southeast Asia. The gaming popularity spills over as a trading opportunity.
The Sandbox Game Gets External Financing
The price boom of SAND immediately follows a high-profile event, as the game company raised significant venture capital in a new round of funding. The Japanese-based Softbank Investment Advisors was among the backers of the $93M round.
The Sandbox aims to boost expansion in the field of Web 3 technologies, digital ownership and metaverse-based gaming.
The gaming trend follows a recent announcement that the gaming giant Ubisoft will also add play to earn options and blockchain games to its portfolio.
Is SAND Accessible
The SAND token is based on the Ethereum blockchain, and accessible through most specialized wallets such as MetaMask.
Based on blockchain data, the SAND token is distributed among around 34,000 owners, though nearly 90% of tokens are concentrated in the top 5 addresses. However, the incentive is to hold onto SAND and use it within the gaming ecosystem, where it can earn extra income through digital ownership.
Play to Earn Tokens Promise Expansion
Play to earn is still one of the youngest trends in crypto activity. The total of game-based tokens have a market capitalization around $23B as of November 2021.
The leading project in that space is Axie Infinity (AXS) and a recently booming Decentraland (MANA). The high visibility, popularity and community around those games also mean more active trading of the underlying asset.
Play to earn tokens remain accessible to traditional traders, but they can also be sold to realize value from in-game items. Unlike the older type of gaming token, items can be bought and sold on an open marketplace, and the proceeds then traded for other crypto coins or for fiat. The play to earn space is thus bringing in traditional gamers that also find appeal in being able to monetize their in-game achievements.
Decentraland (MANA) Shares the Boom
The MANA asset was just behind SAND in Binance trading activity, displacing other traditional assets.
MANA traded at $3.27, on another daily expansion and still close to its peak level above $4.30. Beyond token appreciation, MANA is also a tool to trade digital real estate. Land plots on Decentraland are on offer for a peak price of 5,000 MANA, though the most notable deal was for a plot worth $900,000.
MANA is also capable of short-term price swings, and remains attractive as a source of fast returns.
Interest in blockchain gaming tokens also got a boost from the potential of Metaverse activity. Digital worlds and virtual identities within the blockchain space were applied for years, even before Facebook unveiled its rebranding into Meta.
The popularity of NFT trades also led to the expansion of play to earn, as the items evolved from artwork to in-game items or digital land.
Crypto gaming has set up a clearer use case for tokens, and has regained mainstream attention as being linked to an older, already lucrative industry. The latest price drive brought attention to multiple related coins and tokens with specialized influence on virtual items, collectibles and gaming.
Gaming tokens are still not capable of displacing the interest in DeFi. However, some of the more prominent gaming tokens are already lining up among top gas burners on the Ethereum network.
Most of the in-game tokens are still concentrated on the Ethereum network, with a smaller number of games having a dedicated space on Binance Smart Chain.
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