While it is no news that the general cryptocurrency market struggles due to the downturn of the broader financial markets, some crypto-assets appear to have been dealt the worst hand. A look at SAND revealed the token as one of the most hit by the downturn over the past few days.
Not spared from the impact of the hawkish remarks made by Fed Chair Jerome Powell at the Fed’s Jackson Hole, Wyoming conference, SAND posted double-digit losses. This, 24 hours after the speech was first delivered. In fact, its price dropped from $1.04 to $0.9 on the price charts.
Look before you leap
According to data from CoinMarketCap, the virtual gaming world token was changing hands at $0.9661 at press time. With a significant drop in trading activity on the network, the token’s trading volume also declined by 48% in the last 24 hours.
A look at performance on the daily chart revealed an alarming rate of token distribution being coordinated. The altcoin was severely oversold at press time, with investors emptying their SAND bags in droves. Its Relative Strength Index (RSI) failed to retain its position above the midline and was pegged at 29.
Furthermore, the crypto’s Money Flow Index (MFI) was spotted deep in the oversold territory at 15. As for the Chaikin Money Flow (CMF), it marked its spot below the central (0.0) line at – 0.23, depicting a strong selling edge.
According to data from Coinglass, over the last 24 hours, 28,360 traders were liquidated, bringing the total liquidations to $78.80 million. In fact, $126,597 was taken off the SAND market within that period.
Source: Coinglass
Here lies the catch
While the price per SAND dropped by 7% over the last seven days, The Sandbox ecosystem logged upticks in its growth metrics within the same period. This, according to data from DappRadar.
With 6210 new users onboarded onto the gaming world, the index of users on The Sandbox grew by 230%. Within the same period, 3830 transactions were processed within The Sandbox. This represented a 163% growth in transactions processed on the network in the last seven days.
Also, trading volume over a 7-day period totalled $37.66 million. This, according to DappRadar, meant a 283% growth in trading volume on the network. As for the total value of assets in Dapp’s smart contracts, this grew by over 90% in the last seven days and was pegged at $101.58 million.
Source: DappRadar
Although The Sandbox is powered by its SAND token, the disparity in the alt’s performance and the growth registered within the ecosystem is attributable to the general downturn of the market. Also, the altcoin shares a statistically significant positive correlation with the king coin. With Bitcoin [BTC] struggling since the beginning of the month, only time will tell how well SAND does.
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