The Sandbox (SAND) Rises 90% Since Start of the Year Ahead of $270 Million Unlock
The Sandbox (SAND) is set to unlock 12% of its supply in mid-February, and this significant event has fueled a robust price surge, with SAND climbing 90% since the start of the year.
The Sandbox (SAND) Surges 90% Since Year’s Start Ahead of $270 Million Unlock
The metaverse platform The Sandbox will be unlocking 372,570,278 SAND (approximately $270 million), which represents about 12.4% of the token’s total supply. Half of this amount will be allocated to early investors.
The unlock event is scheduled for February 14, 2023, as part of The Sandbox’s biannual unlock schedule through 2025.
SAND’s price has reacted to the upcoming unlock, increasing by 90% from around $0.40 to $0.70 at the time of writing. However, it's worth noting that SAND is still down 90% from its all-time high of $8 in November 2021.
1D Chart of SAND/USDT on Binance as of 10:45 AM, January 31, 2023
Historically, unlock events are seen as signals for price declines, as the release of additional supply dilutes value, leading to a decrease in token prices. However, recent unlocks have shown a different trend, with tokens appreciating in value ahead of unlocks, as seen with Aptos (APT) and Axie Infinity (AXS).
Some analysts explain this trend as being dependent on the percentage of supply being unlocked. For example, a 50% unlock is predicted to create significant selling pressure.
Nonetheless, the general trend is for token prices to drop immediately after the unlock. During the previous unlock for SAND on August 14, 2022, 75% of the major trades were sell orders from investors taking profits.
