Several LAND parcels in The Sandbox metaverse are now sold at a loss, according to MetaMetric Solutions. The data supplier also stated that now is the best moment to add or bid on undervalued The Sandbox parcels, based on this figure. However, the real question is why individuals are selling The Sandbox LAND pieces at a loss.
The Sandbox’s token value has dropped.
In recent weeks, the Sandbox token, SAND, has seen a downward trend. While SAND’s value has increased in the last 24 hours, its current price of $2.16 is still far behind the coin’s all-time high of $8.40.
Furthermore, since the token’s boom era in late 2021, SAND volumes have been progressively falling. This may explain why many people prefer to sell their land regardless of whether they earn a profit.
After the initial buzz has died down, “As the tumultuous Q1 2022 has come to a close, LAND secondary sales volume declined by 54 percent compared to the previous quarter,” according to a Messari analysis. To put this in context, the number of secondary sales in Q1 2022 is still up 865 percent from Q3 2021.”
The reduction this quarter is due to the fact that the metaverse buzz has subsided following Facebook’s rebranding announcement, which reached an all-time high. As a result, the market is achieving equilibrium. Demand is lower than it was in the fourth quarter of 2021, but it is still strong.
Because digital land is still in its infancy when it comes to creating experiences, owners may also sell LAND. It is currently not feasible for creators to share their LAND experiences with other Sandbox users. Furthermore, there aren’t many P2E features in the accessible experiences, which serves as an evident motivation for participation. As a result, LAND owners may be unsure what to do with their investment, leading them to sell it.
This roadblock, however, is only transitory, especially for high-profile investors. The Sandbox was recently acquired by Hong Kong’s rich Lo Family of Regal Hotels Group. This demonstrates that metaverse land parcels are a good long-term investment for these people.