On this Jan. 12 edition of "The Crypto Show" on Backstage Pass, Fool.com contributors Chris MacDonald and Jon Quast discuss whether The Sandbox (SAND 2.92%) could repeat its incredible performance from 2021, or if that was a one-off type of year.
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Jon Quast: Moving along, we did want to talk about The Sandbox as well. Dennis C, here we are. The Sandbox here, a little bit smaller than Decentraland as far as market capitalization, but bigger in terms of user base?
Chris MacDonald: Yeah. This is one of the faster-growing crypto currencies in the metaverse space. When I think of The Sandbox maybe versus Decentraland, Decentraland was the first and so you can think of it more as a Bitcoin and this might be be Ethereum, that it's growing faster.
From an NFT angle, you can look at the numbers here, they are clearly doing a lot more in terms of transaction volume. The Sandbox has been one of the fastest moving tokens over the past year. It's been better than 100-bagger, I think, in 2021 it was roughly a 110 times higher at end of the year, so 11,000 percent, that's a pretty good return.
Right now, that leads to some investors to a bear case that, it's gone up so far so fast that it's got further to drop and there's certainly some truth to that.
But clearly it's making a lot of headway in this space and it's one of the top metaverse cryptocurrencies that folks are interested in it. Like I mentioned in Sandbox, you have a somewhat of a different model in terms of how NFTs are monetized and shared on the platform.
One of the big news pieces with the Sandbox recently was partnerships with Square Enix, which I think we touched on last week during the Crypto Show, and Atari. There's some big developers that are looking at the metaverse, that are picking the Sandbox and that's definitely interesting. There's a lot of investors that are looking at this from the growth angle and saying, "Both case sound it's pretty great."
Of course, there's always risk with any cryptocurrency. We're already went over the bear case with it.
