The Sandbox (SAND): Q3 2024 Key Insights

The Sandbox (SAND) is a gaming metaverse where players and creators can make 3D assets and experiences (e.g. games) that can be monetized via NFTs.

The Sandbox (SAND) Key Insights for Q3 2024

With a presence in the Web3 gaming scene since 2012, The Sandbox has undergone several iterations, culminating in its current form as a 3D metaverse gaming platform. Players can create, host, and monetize their experiences and assets within The Sandbox ecosystem through the use of SAND and NFTs.

Here's a summary of The Sandbox's key developments and metrics for Q3 2024:

Staking Activity

SAND staking is conducted on the Polygon network and involves two staking pools: one for LAND owners and one for everyone else. LAND owners can stake up to 2,000 SAND per LAND asset in this pool. In the other pool, any SAND holder can stake their SAND, though LAND owners receive a multiplier based on the number of LANDs they own.

The daily average SAND staked fell by 18.7% QoQ from 84 million to 68.3 million. While the amount of SAND staked by non-LAND owners decreased by 5.6% QoQ, the amount of SAND staked by LAND owners increased by 1.6% QoQ. This indicates an increase in alignment between LAND owners and the broader Sandbox ecosystem.

Additionally, the percentage of the circulating supply of SAND staked fell by 3.6% QoQ from 2.44% to 2.36%.

NFT Sales Activity

Activity on The Sandbox is conducted through digital real estate called LAND NFTs. Content creators can host metaverse experiences on plots of LAND. As such, LAND is valued highly amongst all The Sandbox NFTs. While non-LAND NFTs are valued lower, they are still necessary for various types of activities in The Sandbox metaverse (e.g., CATALYSTS to create ASSETS and give them attributes).

With a difference in general monetary value, LAND is more scarce (at a 0.11 ETH floor on OpenSea as of September 30), lowering the potential buyer pool. Non-LAND assets are priced lower (at a 0.0001 ETH floor on OpenSea as of September 30), allowing for a substantially larger potential buyer pool.

Throughout the first half of 2024, the NFT market has seen a decline in demand and activity across a majority of the sectors, thus leading to an overall decline in demand for assets from The Sandbox. However, in Q3, daily average active LAND buyers increased by 14.8% QoQ, indicating a potential reversal in demand for LAND. On the other hand, daily average active non-LAND buyers declined by 40.5% QoQ.

Financial Performance

In Q3, the total market cap of all cryptocurrencies declined by 4% as the market saw activity cool off after a strong first half of the year in 2024. In line with this broader cryptocurrency market contractions in Q3, SAND’s circulating market cap declined by 7.4% QoQ from $746.9 million to $691.7 million. This decline was largely attributable to the price decline of SAND, down 12.33% from $0.33 to $0.29.

The total primary sale volume measures the USD amounts for which assets from The Sandbox were sold, and The Sandbox company retains the earnings from these primary sales. The Sandbox conducts five different types of primary sales: public non-LAND, public LAND, private LAND, private ESTATE, and private Auction.

In Q3, total primary sales volume was up 17.3% QoQ, increasing from $252,000 to $297,000. This increase was primarily driven by an increase in LAND and private LAND sales volume, which increased by 36% and 179.6% QoQ, respectively. In contrast, non-LAND sales volume fell the most, decreasing by $16,000 QoQ (down 10%). As a result of these increases in primary sales volume, total revenue increased by 2%, from $272,000 to $277,000 in Q3.

Additional Developments

Partnerships and Integrations

The Sandbox announced several partnerships in Q3, including one with SSC Napoli, the Italian Serie A football club, to integrate the club's stadium and players into The Sandbox metaverse. Another partnership was forged with Magic Eden, a Solana-based NFT marketplace, to enable users to purchase CATALYSTS directly from The Sandbox Marketplace.

Finally, The Sandbox unveiled a partnership with Attack on Titan, a popular anime series, to launch a LAND sale and introduce Attack on Titan-themed experiences and assets into The Sandbox metaverse.

Events

The Sandbox hosts a variety of virtual events on its platform for its players to enjoy and win rewards.

In Q3, The Sandbox held two LAND