SAND

Sandstorm Gold Ltd.

7.1200
USD
-1.39%
7.1200
USD
-1.39%
4.9610 7.6700
52 weeks
52 weeks

Mkt Cap 1.29B

Shares Out 178.76M

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Can The Sandbox Reach $8?

The Sandbox (CRYPTO: SAND) topped $8 last fall when cryptocurrency markets were soaring. The total value of the market had reached more than $3 trillion in November. It's since declined to about $1.3 trillion, according to Statista. The Sandbox likely benefited somewhat from the general market momentum -- and today, trading for less than $2, it is suffering along with the market too. But Sandbox-specific reasons also drove the cryptocurrency's initial gains. And those reasons remain valid today. Could they push The Sandbox back to its peak of more than $8? Let's find out. A player in the metaverse First, a little background. The Sandbox is a player in the increasingly popular metaverse. The metaverse is all about creating virtual worlds where you can buy land and seek out the same sort of experiences -- such as entertainment -- that you find in the real world. My colleague Kristi Waterworth recently wrote about a Citi report predicting big things for the metaverse by 2030: namely, an $8 trillion to $13 trillion market opportunity. How can The Sandbox benefit? The Sandbox is a virtual world built on the Ethereum blockchain. To buy assets in this virtual world, players use the token "Sand." Investors also can buy tokens for investment purposes only. The Sandbox is already carving out its space in the metaverse. It's been selling virtual land to the public for more than a year. And it has attracted some pretty big buyers. For example, rapper Snoop Dogg not only bought land in The Sandbox -- but he's also inviting players to join his "Snoopverse" through access passes and party passes. The Sandbox is a play-to-earn experience. That means when you invest in land or other assets in the game, you truly own them -- and may eventually resell them. So, for players, there's a real incentive to dive in and participate. Two Alpha events Though The Sandbox saw big gains in value last year, the increases may not be over. That's because The Sandbox is in the early stages of its growth story. The platform has held two Alpha events that allowed a limited number of players to experience all The Sandbox has to offer. The latest -- Alpha Season 2 -- resulted in more than 325,000 Alpha hub visitors. The Sandbox is now registering participants for Alpha Season 3. According to The Sandbox roadmap, there's a lot more to come: the first virtual concerts and a mobile version launch later this year, for example. All of this means there are plenty of catalysts to eventually push the value of The Sandbox higher. From a token supply perspective, too, The Sandbox could reasonably reach $8. Today, the circulating supply totals about 1.2 billion tokens. So, such a gain would equal a market value of $9.6 billion. Right now, that would make The Sandbox the 12th biggest cryptocurrency by market capitalization. Of course, The Sandbox faces the risk of competition. It's not the only player in the metaverse. And though some analysts are optimistic about the metaverse in general, it still is a new area. It may not take off as expected. So only invest what you can afford to lose. That said, The Sandbox has the right elements to carve out a solid spot in the metaverse. As a result, it could make it back to the level of $8 -- or even higher down the road. 10 stocks we like better than The Sandbox When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and The Sandbox wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 27, 2022 Citigroup is an advertising partner of The Ascent, a Motley Fool company. Adria Cimino has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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