Gaming and metaverse tokens have not particularly shared high correlations with Bitcoin. They’ve embarked on rallies in the past during sluggish broader market conditions and have capitulated in favorable environments. However, the trend has already started changing as top tokens from this category have yet again started living in Bitcoin’s shadow.
Take the case of Sandbox itself. Until mid-December, this token shared a negative correlation with Bitcoin. At one point back then, the number was as deep as -0.84. Fast forward to the current day, this metric stands at +0.80 presently. The same can be evidenced from the chart attached below.
SAND’s fate is tied with that of Bitcoin’s now. So, if the broader market steps into consolidation yet again, we might witness this token tumble along too. Additionally, at press time, The Sandbox showed a couple of other signs of weakness also that put question marks over its near-term prospects.
Deciphering SAND’s metric readings
To begin with, consider the state of the active addresses. This metric peaked at 10.37% during the third week of February but has been hovering around 1% of late. For Sandbox, price rallies have more often than not coincided with high blockchain activity and vice versa. The said trend can be noted on the chart below.
Next, the token’s volumes continue to maintain their shriveling trend. Over the past month, this metric did revive a couple of times, but couldn’t stay high for long. When compared to 8 February’s $1.37 billion, the SAND’s volume reflected a value under $100 million at the time of press.
Also, the chitter-chatter on social media about this token has, sort of, reduced over the past few weeks. Santiment’s data brought to light that the social volume metric was adhering to its monthly downtrend. From noting over 655 mentions on 2 February, this number has substantially deflated and has been hovering around 200 over the last couple of days.
So, for SAND to be able to continue maintaining its uptrend, the said signs of weakness need to fade away. Else, it’d be challenging for this token to maintain its green patch. SAND was trading at $3.35 at the time of press, up by 4% in the day’s trade.