On Aug 14, a scheduled token unlock event will see 332.55 million SAND tokens worth $133 million released into circulation. Historical data shows that market reactions could put The Sandbox price stability at risk.
According to data from TokenUnlocks.App, The Sandbox is set to increase its circulating supply by 332.55 million SAND tokens on August 14. In addition to the 372.57 million SAND added during the previous unlock event on Feb.14, this will bring the total inflation rate for 2023 to 705 million tokens.
On-chain data analysis examines if The Sandbox user base growth and network demand can absorb the 41.85% inflation without threatening SAND price stability.
Compared to 2022, The Sandbox Network Growth has Declined Considerably
One of the critical factors that cushion the effect of a massive token unlock is Network Growth. It evaluates the rate at which the blockchain network attracts new users.
According to Santiment,…
