If there has been one exciting development in the cryptocurrency space as the market continues to grow, it is the introduction of fan tokens. As the name implies, a fan token is a form of cryptocurrency that offers holders a variety of privileges and also serves as an opportunity for fans to engage with their favorite sports teams.
For some fan tokens, holders get to vote on club decisions or have specific ownership in an asset related to the sports team. Other benefits also include random rewards, free merchandise, and sometimes, exclusive access to unique experiences.
Apart from these perks, fan tokens also offer holders the chance to gain from price action if the token performs well. Currently, the top 5 fan tokens by market capitalization include tokens from prominent football clubs. These tokens include BAR, ALPINE, CITY, LAZIO, and PSG.
As the market continues to grow, investors might be wondering if these fan tokens are worth considering for their portfolios. Let’s take a look.
FC Barcelona Fan Token (BAR)
Spanish-based club FC Barcelona launched BAR in collaboration with Chiliz (CHZ), a sports-based blockchain project in 2020. Built on the Chiliz chain, BAR offers fans and holders the ability to vote in polls and get VIP access to the club matches.
BAR uses a Proof-of-Authority (PoA) sidechain to give holders access to these perks. Also, the token has a market cap of $26.68 million and a maximum supply of 40 million coins. In terms of price action, BAR has not performed badly of late.
According to CoinMarketCap, BAR’s price was $2.55 at press time, This was a 3.27% increase in the last seven days. However, in the last 365 days, the token has lost 62.40% of its value. While this might look like an opportunity to accumulate at a discount, investors may need to be cautious.
BAR 30-Day Performance (Source: CoinMarketCap)
For instance, Barcelona has not had a financially great year, and this could contribute to the token performance. At the same, the club had a good show in the previous season, If it replicates or improves from last season’s performance, then BAR might experience a surge in adoption. In turn, this could positively affect its price.
Alpine F1 Team Fan Token (ALPINE)
Second on the list is ALPINE, the first Formula One (F1) token developed by Binance. The world’s largest exchange created ALPINE as a fan token for French car manufacturer Alpine Cars and the Alpine F1 team.
The major use case of the token is that holders can participate in Binance voting sessions. Also, holding ALPINE offers fans to stake NFTs, get signed merchandise, and meet with the Alpine F1 drivers. Because it was built by Binance, ALPINE is a BEP-20 token and operates on the BNB Chain.
At the time of writing, ALPINE had a market cap of $21.72 million, and a circulating supply of 11.36 million. Price-wise, ALPINE has had a relatively fine 7-day performance, as the price was $1.91.
ALPINE 30-Day Performance (Source: CoinMarketCap)
However, in the last year, its performance has not been exactly different from BAR, losing 55.51% of its value in the process. The Alpine has had its share of success, winning an F1 tournament.
But recently, the team’s management has not been void of chaos. So, investors may need to watch out if there’s any resolution in sight. If there is progress in resolving the issue, ALPINE may be considered undervalued, and now may be the time to accumulate some.
Manchester City Fan Token (CITY)
It is definitely no surprise that the Manchester City Fan Token is on this list. As one of the most successful teams in recent times, the club’s success did not spread to its token. According to CoinMarketCap, CITY’s value had dropped by 86.13%.
However, there was something impressive about the CITY token at the time of writing. Its 24-hour trading volume which was $3.88 million increased by 123%. The hike in volume suggests that there was a lot of interest in the city token, and transactions were impressive.
This increase in transactions is something investors may want to consider. If CITY sustains an impressive trading volume, then, it could be a good token to buy and hold for a period of time.
Like the Barcelone token, CITY was also built on the Chiliz blockchain and has similar perks for holders. As of this writing, CITY’s market cap was $20.21 million with a circulating supply of 3.5 million tokens.
CITY 7-Day Performance (Source: CoinMarketCap)
S.S Lazio Fan Token (LAZIO)
The LAZIO Fan Token is similar to ALPINE since it was also developed by Binance and launched on the exchange Launchpad. Like other fan tokens, LAZIO offers holders the right to vote and access rewards that ordinary fans do not have. As expected, LAZIO does not operate on the Chiliz blockchain.
Rather, it was created as a token on the BNB Chain. At the time of writing, LAZIO’s market cap was $17.27 million. In the last 90 days, LAZIO’s value has decreased by 15.36%.
But the token may be considered undervalued since its drawdown from its All-Time High (ATH) is a massive one. Therefore, investors looking to buy LAZIO can watch out for development around the club.
LAZIO 365-Day Performance (Source: CoinMarketCap)
Paris Saint-German Fan Token (PSG)
Last on this list is the PSG Fan Token. PSG has been the most successful club in France for the last ten years. So, it was not surprising when the Socios.com team developed a token in its honor. The PSG token is backed by the Chiliz blockchain.
Interestingly, PSG has a similar sentiment to CITY such that its 24-hour trading volume spiked by 915%. Furthermore, the surge in volume positively impacted the price which rose by 6.11% within the last 24 hours.
PSG 1-Day Performance (Source: CoinMarketCap)
The surge in trading volume implies that market participants have eyes on PSG. Thus, others on the sidelines may want to consider PSG as a token for possible long-term gains.
In conclusion, it is likely that there are other fan tokens that have great potential. At the same time, these five with the highest market cap may continue to be relevant in the coming years.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.