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$10,000 Invested in The Sandbox Crypto a Year Ago Would Be Worth This Much Today

By Chris MacDonald – Jan 11, 2022 at 8:45AM

Key Points

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Here's the staggering return a metaverse-oriented portfolio has brought investors.

Rising interest in the metaverse has turned out to be a great thing for cryptocurrencies laser-focused on growing their market share in this digital space. A leading metaverse cryptocurrency, The Sandbox (SAND -3.17%), has absolutely skyrocketed this past year. With returns of 11,200% over the past 12 months, investors who put $10,000 to work in The Sandbox have seen this amount grow to more than $1.1 million.

That's one heck of an incredible return.

What's perhaps more interesting is that The Sandbox has actually dropped more than 40% from its peak late last year. The crypto market remains volatile, and even metaverse-related cryptocurrencies are getting hit. That said, for those looking for the future of the crypto sector, the metaverse is a red-hot niche right now for a reason.

Sandcastles in a sandbox.

Image source: Getty Images.

Just how much interest is there in the metaverse anyway?

Looking at the recent statistics on The Sandbox's growth provides a bit of perspective on the size of this market opportunity. Data from suggests that digital real estate purchases have exceeded $100 million, as of a month ago. Additionally, The Sandbox has unveiled its Alpha NFT collection, to great applause. 

The launch of Sandbox Alpha alongside the Alpha NFT collection is a big deal for investors. This multi-year project aspires to be the next iteration of the metaverse, on The Sandbox platform. To date, approximately 5,000 users have been granted initial access to this segment via an exclusive pass.

You know how it is, the more exclusive something is, the more people want it.

Thing is, The Sandbox is one of a number of burgeoning metaverse cryptocurrencies out there. This sector is absolutely booming, with some including Cathie Wood suggesting the metaverse could be a multi-trillion dollar opportunity. That's a big deal.

Other companies like Meta Platforms (formerly Facebook), Nvidia, and Roblox have soared in value this year. The CEOs of these metaverse-related companies have touted just how big of an opportunity they see the metaverse being for their businesses. Accordingly, those looking to get in on the ground floor of what could be a revolutionary movement are seeking out some of the more speculative ways to play the metaverse, which unsurprisingly can be found in the crypto world.

Of course, there are risks

As with any ultra-high-growth sector, the fear of missing out on such a great opportunity can be real. Investors who bought The Sandbox near the peak of this "rush to the metaverse" are down more than 40%. Valuations always matter, regardless of what asset class we're talking about.

Of course, the growth potential of The Sandbox is what many investors have stuck with as a key thesis to hold the SAND token long term. Thus far, this long-term buy-and-hold strategy has worked out well, in totality. However, further declines could always materialize, particularly in the face of what could be some rather hawkish monetary policy coming down the pike this year.

Where to go from here?

For those looking to get their feet wet in the metaverse, The Sandbox is a token worth considering. Those who got in early and booked their 112-bagger may want to take a little cream off the top. Indeed, there's likely some profit-taking to be blamed for this token's recent decline. That's fair.

However, those looking to get into the cryptocurrencies of the metaverse-driven future may like this recent dip. A 40% discount is a 40% discount, and for those who think this rally has just started, perhaps this is a dip worth buying.

Personally, The Sandbox is on my buy list, though it's not yet at the level where I would want to accumulate this token. I might be greedy, but I think this sell-off may have some legs. That said, I'm going to be patient and watch this one; I have a feeling it's going to make my portfolio at some point.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris MacDonald owns Meta Platforms, Inc. The Motley Fool owns and recommends Meta Platforms, Inc., Nvidia, and Roblox Corporation. The Motley Fool has a disclosure policy.

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