The Sandbox is one of the three major players in the race to become the number one future Metaverse.
It was the first company to launch a future Metaverse in 2018, behind Decentraland and Meta.
The Sandbox has continued to grow into a mainstream player where today events, parties and celebrity concerts are put on in the virtual world for anyone to join in from anywhere in the world with a cell phone, tablet, PC, and internet connection.
The Sandbox, like many other cryptocurrencies, took a sharp decline in value in 2022 along with stocks and shares in a huge global recession.
SAND (the cryptocurrency of The Sandbox Metaverse) hovered between $0.50 and $3.00 throughout 2022, with the latter price being reached throughout early 2022.
SAND will need to increase its value by 20,000%, or 200x, to reach $100.
This may sound an incredibly difficult challenge for the blockchain start-up, but when compared to the 142,000% growth of Shibu Inu (SHIB) in just over a year, it sounds at least possible.
What will really determine whether SAND, and The Sandbox, can reach $100 is its market capital compared to the biggest cryptocurrency coins.
Market capital is the biggest deciding factor as to whether a cryptocurrency has the potential to 100x its current price.
Now, Ethereum managed to increase its price from a low of $0.81 to a high of $4,300, and Bitcoin managed to increase its price from a low of $0.09 to a high of $51,000.
Based on these price increases, it seems feasible that SAND, the cryptocurrency behind Decentraland, could increase from $0.50 to $100.
But ultimately, it’s the market capital that needs to be analyzed to see the true potential.
What is Market Capital in Cryptocurrency
The market capital in cryptocurrency is the calculation of current price multiplied by number of circulating tokens. It provides the most accurate valuation of a cryptocurrency and allows investors to draw comparisons to other cryptocurrencies on the market.
It can be shown more simply using the calculation:
Number of tokens in circulation * Trading Price = Market Value
This is the most important value to use to see whether Sandbox has a chance of reaching $100 a coin.
If the coin has a very high market capital, even if it has a low price, it indicates growth of this type of value is very difficult
On the other hand, a very low market capital, even with a high price, can show the coin at least has the potential for large growth and very high returns.
Whether a cryptocurrency price increase or falls is down to demand, so it needs to be able to find buyers and investors to increase at all, let alone by 20,000%.
We can look at this using an example:
A cryptocurrency with 2,000,000 circulating coins may have a trade value of $20 a coin, giving this cryptocurrency a market share of $40,000,000.
Another cryptocurrency with 2 billion circulating coins may have a trade value of $2 a coin, giving this cryptocurrency a market share of $40,000,000,000.
Although the second cryptocurrency has a current price of $2 compared to the first cryptocurrency of $20, it is the $20 cryptocurrency that is worth less.
1,000 times less in fact.
It will be relatively easier for the first coin to increase 100 times in value to become worth $4,000 and have a market capital of $40billion than it will for the second coin to increase 100 times in value, become $200 a coin, but have a market capital of $4trillion!
Market capital is a better indicator of potential future growth when comparing against other cryptocurrencies, than the value of the coin.
Market Capital of Sandbox
The market capital of Sandbox will fluctuate daily based on the current price.
Although the number of coins in circulation is normally static day to day, the price can change every minute, and so using our calculation in the last paragraph it will mean the market capital can and will fluctuate.
Unless there is a dramatic market shift in to, or away from, Sandbox the market capital should remain reasonably steady.
At the current time the market capital of Sandbox is approx. $674million!
This is a good size market capital for a cryptocurrency, but it is only in the shadow of the market capital of the two biggest cryptocurrencies, Bitcoin and Ethereum.
Its current size shows a vast number of people have already invested into Sandbox, and into the idea of Sandbox becoming the dominant or senior player in the Metaverse market.
As the Metaverse is still incredibly early a growth of 200x, or 20,000%, maybe possible if it meets expectations to become the new internet where millions if not billions of people meet, socialize, and communicate.
If Sandbox did increase by 200x, and SAND reached $100, it would make it the third most valuable cryptocurrency on the market behind Bitcoin and Ethereum.
This it least gives SAND and The Sandbox an opportunity to reach a $100 price without it being a completely unrealistic target.
To understanding the influence market capital has on the potential of large-scale returns, it’s important to understand why market capital is so important.
Why Market Capital is so Important for Sandbox
It isn’t possible to take a cryptocurrency price and compare it, in terms of size and value, to another cryptocurrency.
In fact, the price is almost completely irrelevant.
As we have seen, a cryptocurrency at $0.75 maybe a lot more valuable than one with a current price of $75.
For example, if crypto Y has a current trading price of $2 but there are 50 billion coins in circulation it will have a much harder time increasing to $4 compared to the chances crypto Z has increasing from $2 to $200 which has a current circulation of 200 million coins.
This is because of the amount of money within the overall market and the amount already invested into crypto Y.
In the example above crypto Y already has a valuation of $100billion, which would make this crypto the third most valuable on the market.
Whereas crypto Z only has a valuation of $200million.
If crypto Z began to gain traction and started to see substantial gains, the market would shift and potentially sell their holding of crypto Y in exchange for crypto Z, seeking a higher return.
Just 10% of the amount held of crypto Y being sold off and moving into crypto Z would see crypto Z increase 20,000%, or 200x.
On the other hand, all holders of crypto Z could sell and move this amount in to crypto Y, and crypto Y would increase by just 0.1%.
Therefore, a cryptocurrency with a much smaller market capital has a much better opportunity of increasing significantly if demand increases, and money moves across from other cryptocurrencies.
To understand whether The Sandbox SAND can reach $100 let’s compare its market capital with other cryptocurrencies.
Sandbox SAND Market Cap vs Other Cryptocurrencies
Here is a table showing how the Sandbox SAND cryptocurrency compares to other top coins such as Bitcoin, Ethereum, Solana Dogecoin, Shibu Inu, Polygon MATIC and Decentraland:
For Sandbox to reach $100 in would need a market capital of $134billion and become the third largest cryptocurrency behind Ethereum and Bitcoin.
Unless more investment entered the market it would require a major reduction in the values of either Ethereum or Bitcoin, or both, to push Sandbox to this magnitude of value.
Although for most cryptocurrencies this is unlikely without a major announcement or shift in the entire industry bringing in more capital from outside, the Metaverse is often quoted as being the next version of the internet and is expected hundreds of millions or even billions of users will join.
If this is achieved, and Sandbox emerges as the dominant Metaverse, reaching a valuation of $134billion and reaching a $100 price could certainly be achievable.
Could Sandbox Reach $100
If Sandbox becomes the dominant market leader of the Metaverse industry, then it is very possible money could move from other cryptocurrencies or other investments such as stocks and shares, and increase the market capital of Sandbox which could see the price of SAND reach $100.
It’s the very start of the Metaverse industry and journey, and although Sandbox, Decentraland and Meta are the leading the charge in this new technology there may be other huge companies or even new start-ups that could enter and dominate the market.
There is speculation here and increasing 100x is not going to happen overnight but analyzing the Sandbox’s market capital compared to other cryptocurrencies, and the money invested in the cryptocurrency already, it is at least possible.