Could This Metaverse Crypto Be a Multibagger?
Cryptocurrencies often are associated with the idea of storing money or trading assets. And they are the doorway to the world of decentralized finance. But cryptocurrencies also are making a name for themselves well beyond financial transactions. In fact, they're becoming the key to new worlds. I'm talking about the metaverse , or virtual worlds where people can socialize, attend concerts, and even buy land.
One of these players that's been making headlines is The Sandbox (CRYPTO: SAND) . It's a game built on the Ethereum blockchain -- so all of the gaming activity happens there. And players use Sand tokens to make purchases in this virtual world. The Sandbox climbed more than 19,000% last year just as the game was getting started. Now the question is could this metaverse crypto, from today's level, be a multibagger? Let's find out.
First a little bit about this dynamic player. The Sandbox is a play-to-earn game. That means as you play you can buy land, for instance. Then you can sell that land to other players to earn a profit. All transactions are done with Sand tokens. What's put The Sandbox in the headlines? A lot of attention from celebrities including rapper Snoop Dogg. He bought land in The Sandbox and is building a mansion there. Players can study the map of lots available and even buy one next to the famous rapper. Or they can buy an access pass to Snoop Dogg metaverse experiences and parties. Other well-known builders include video game giant Atari .
Interest in The Sandbox is climbing. The number of active wallets -- or those that bought or sold an asset -- rose from about 4,000 in January of last year to nearly 25,000 today, according to nonfungible.com.
The Sandbox recently completed its first Alpha multiweek gaming event and is already planning the next one. Users gain access by winning a pass or buying one -- if another player is willing to sell. The Sandbox said Alpha season 1 included more than 150,000 hours played and more than 200,000 visitors.
When it comes to market value, The Sandbox right now is the world's 39th biggest cryptocurrency. Can it become a multibagger and climb significantly higher? One big risk for The Sandbox is it depends entirely on the popularity of gaming . You can't use the Sand token in the real world. So, an investment in The Sandbox is a bet that the game will gain in popularity -- and manage to stand out among rivals.
A potential multibagger?
But if The Sandbox continues to attract players, it could become a multibagger. The move works from a math perspective too. The Sandbox trades for about $4.48 today and has a circulating supply of 921 million tokens. If it tripled, its market value would top $12 billion. That would make it the 16th biggest cryptocurrency according to market capitalization.
The cryptocurrency market is volatile -- so such a move could happen quickly. And the market is also risky -- so such a move may not happen at all. When buying cryptocurrency, it's important to only invest what you can afford to lose. That said, The Sandbox is a player to watch. It's drawing interest from big names and gaming fans. If they stick with it, The Sandbox could gather momentum -- and maybe even become a multibagger.
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