The sports tokenization blockchain Chiliz saw its native token CHZ surge over 89% in the past 24-hours to $0.5101.
What Happened: The coin recorded gains of more than 300% over the past week, outperforming most NFT blockchains in the space.
The most recent rally comes after news of premier football team Paris Saint Germain (PSG) progressing to the quarter-finals in the Champions League.
Chiliz specializes in creating tokenized digital assets called Fan Tokens that are unique to each sporting team.
Following PSG’s Champions League progression, the $PSG Fan Token rose by nearly 110%, and the leading football team took to Twitter to share the observed “strong demand” for digital collectibles with its 8.7 million followers.
Forte demande de $PSG Fan Tokens suite à la qualification pour les ¼ de finale !
Follow @socios et @Chiliz, prépare tes tokens $PSG et sois prêt pour les nouveaux #NFTs prochainement disponibles sur l’app https://t.co/MWGvmjKDKj#NFT #digitalcollectibles
— Paris Saint-Germain (@PSG_inside) March 11, 2021
According to reports, over $550 million worth of digital Fan Tokens were traded across some of the largest cryptocurrency exchanges worldwide, and several other Fan Tokens like Juventus $JUV (79%) and Trabzonspor (82%) also gained significantly in price.
Why It Matters: Several Fan Tokens like Juventus ($JUV), Atlético de Madrid ($ATM), AS Roma ($ASR), and AC Milan ($ACM) have been gaining traction on cryptocurrency exchanges like Binance.
However, the traction from these tokens seems to have had a cascading effect on the price of Chiliz’s token too.
Chiliz CEO Alexandre Dreyfus took to Twitter to share that the Chiliz token was the 9th most traded crypto asset by volume at the time of writing.
Today, @chiliz $CHZ is the 9th crypto asset traded (as per @CoinMarketCap). Incredible. Thanks for your support and for following our long-term vision. Up or down, volume or not, we are building every day what will be a game-changer for the sports industry. Block by block.
— Alexandre Dreyfus (@alex_dreyfus) March 11, 2021
The increased trading activity for CHZ can also be seen by the astronomical growth in the platform’s market cap, which grew from $100 million to over $2.7 billion in a matter of four weeks.
“A new digital sports ecosystem drawing participation from the biggest sporting entities in the world, which is already averaging daily trading volumes of $50 – $100M and, as last night shows, is capable of driving much higher volumes,” said Dreyfus.
Image: Executium via Unsplash
Related Stories
How to Make Your Own NFT
What is a Non-Fungible Token (NFT)?
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights
reserved.
