Global fan token market cap edges closer to $360M
- Fan Token market capitalization hits $358,113,633.
- The figure dropped by 15% in the last three months.
Fan tokens first came to be in 2018, with the launch of Chiliz (CHZ). Today, this group of utility tokens has become increasingly popular, especially among sports enthusiasts and diehard fans.
BanklessTimes has been compiling data on the global fan tokens. According to the findings, the global market cap of these tokens stands at $354,402,569. This figure indicates a decline of about 15% from the December 2021 market cap of about $417 million.
The cause of the decline isn't clear, although further analysis shows that most fan tokens plummet soon after their listing. Perhaps this is because traders and speculators flood the fan token market more than the sports fans, for whom the tokens are actually made for.
PSG, Manchester City among most valued tokens
BanklessTimes further ranked the tokens by their value, and it's no surprise that football-based tokens occupy the top spots.
The data indicate that Paris-Saint Germain (PSG) is the most valued fan token, with a market cap of $51,248,385. Manchester City's token comes second with a $38,464,072 market cap. The two tokens are built on the Chiliz blockchain and issued by Socios, one of the major fan token providers. The tokens are currently trading at $16.16 and $10.17, respectively at press time.
The third position is occupied by FC Barcelona's token, BAR, which has a market cap of $29,309,773.
Alpine F1 Team, a newly launched formula one team on Binance, comes in fourth, towering over older tokens, days after its launch. Like other fan tokens, ALPINE has registered a 30% decrease in the last trading week.
Other tokens that make it to the top 10 list include Juventus, AC Milan, and Inter Milan fan tokens. Binance's Lazio is the only other non-football-based fan token on the list besides ALPINE. It has a market cap of about $18 million, ranking it 6th on the list.
Fan tokens at the forefront of crypto mass adoption in the sports
Fan tokens are digital assets that allow holders membership-only perks across different platforms. In this regard, they can be used on just about any platform with a fan base.
However, these tokens have established a solid base in sports and, in particular, football, as clearly indicated by the data analyzed by BanklessTimes. Just as iGaming is doing with Defi and nfts, sports currencies are driving the mass adoption of cryptocurrencies in the sports field.
One of the biggest concerns is the tokens' utility. Although fan tokens are meant for the fans and should ideally offer perks like rewards, merchandise, and voting rights, the token market is full of people who are out to make a quick buck. Most tokens register up to an 80% decline in price after launching, which raises questions on the clubs' motives. Are they all just looking for a way to monetize their fan bases?
That said, the tokens are still in their early developmental stages, and there's no telling how far they'll go.