Home
News
Fan tokens have emerged as utility tokens that offer certain benefits in terms to a particular club that is linked with it. Moreover, these tokens also act as governance tokens that allow the holders to vote on a certain decision. Moreover some of such unique cryptocurrencies provide exclusive access to Club rewards. However, the fans of these Clubs have shown notable interest and demand for these cryptocurrencies. Indeed, the total market capitalization of such crypto assets has been observed skyrocketing.
Fan tokens market capitalization soaring
The fan tokens ecosystem has been growing rapidly since the beginning of this year. The total market cap of the ecosystem has increased by more than $157 million since June. According to data published by FanMarketCap, a major popular fan-based cryptocurrencies data aggregator, the total market capitalization has been estimated to amount more than $417 million at press time. Notably, the total market cap was up by more than 60% over the past six months.
According to data from FanTokenStats, Paris Saint-Germain (PSG) and Manchester City (CITY) are some of the most-valued cryptocurrencies of their kind. Notably, these crypto assets are issued by major fan token providers Socios and are based on the Chiliz blockchain network.
In contrast, the total market cap of PSG alone is valued at over $49 million, whereas, CITY has a more than $38 million worth of cap. Binance, one of the leading crypto assets exchanges, has been among the major players of such digital assets. The exchange launched its own fan tokens hub this year in October. On the platform, Lazio Fan Token (LAZIO) is among the largest assets of its kind with a rough market cap of more than $51 million.
Surge in daily average trading volume
Besides the total market cap, we have also noted that the daily average trading volume has also been soaring. At press time the fan tokens’ daily trading volume has been noted near $270 million.
According to Alexandre Dreyfus, the CEO and founder of Chiliz and Socios, the ecosystem has sold more than $250 million worth of such assets. Moreover, Dreyfus estimates that the market of these social crypto assets would grow by $10 billion over the upcoming years.
Why are such cryptocurrencies in demand?
It is worth noting that these fan tokens offer access to a number of fan-related membership perks. Such perks also include voting on club decisions, merchandise designs, rewards, and offers more engagement experiences within sports clubs and music fan clubs.
According to Dreyfus, these assets are unlike other cryptocurrencies, as the holders cannot spend these to purchase something. Rather, holders can own these tokens to get fan benefits. Still, such utility assets have a lot of use cases for fans and traders.
