The Sandbox (SAND) token faces correction after massive weekly rally

The Sandbox (SAND) cryptocurrency has experienced significant volatility, following a weekly surge of approximately 68% that saw prices rise from $0.044 to over $0.08. This rally was largely driven by South Korean exchanges Upbit, Bithumb, and Coinone lifting a trading caution designation previously placed on the token in August.

The caution had been implemented following a bridge exploit on the Base and BNB Smart Chain platforms, where an attacker minted an estimated $49 billion worth of unbacked SAND. The Sandbox responded by severing the bridges and establishing a 1:1 compensation plan for affected users, noting that the impact represented less than 0.01% of the total supply.

Following the recent peak, SAND has entered a correction phase, dropping more than 10% in the last 24 hours. This decline aligns with a broader downturn in the gaming sector, which saw trading volume decrease by 23%. Despite the price drop, recent data indicates a reduction in selling pressure as spot buying activity has increased and exchange reserves have shifted.