Chiliz (CHZ): 3 reasons why the price of the token is exploding. Over the past few years, a number of cryptocurrencies have followed Bitcoin's movements, both up and down. It is even possible to say that it is generally the norm.
However, the Chiliz (CHZ), a project that aims to monetize fan engagement via blockchain technology, is currently enjoying a very strong surge.
It has been several weeks since this uptrend on the Chiliz took hold. As a reminder, the price of the cryptocurrency was only €0.0992 on July 26 before gradually climbing to a price of €0.2067 on August 17. Following this spike, the price of CHZ fell to 0.1827 euros on August 21.
Since then the trend has been increasing again. Indeed, the price of CHZ progressed until it reached the bar of €0.2661 on August 23rd. Today, August 25, the price has come down slightly but remains markedly higher.
In total, this equates to an increase of just over 150% since the end of July. We will now review the reasons that could explain the recent uptrend in Chiliz.
The new CHZ 2.0 blockchain
The founder of Chiliz, named Alexandre Dreyfus, announced on August 22 his desire to stop using the Ethereum blockchain as part of his activities. He and his team would replace the latter with their own native blockchain. And this is in order to launch their fungible and non-fungible tokens.
In this regard, Alexandre Dreyfus said:
"We shouldn't forever rely solely on ERC20 or ERC721 equivalents. At Chiliz, we believe we can bring innovation on top of fungible token formats. As we work with a hundred of the most important brands in the world, it is easy for us to expand and scale our business."
This announcement coincided with a 19% increase in the price of CHZ on Monday, August 22 alone. This was accompanied by strong mobilization in terms of the volume of trade. From a technical standpoint, this supports investor confidence in the upcoming update.
CHZ price over the last 7 days.
The return of large wallets on Chiliz
The recent increase in the price of CHZ is to be related to the return of the activity of the whales (or whales in French). As a reminder, this is a term that designates in the cryptocurrency community a major market player with a very large portfolio.
In addition, the number of CHZ transactions whose value is above the $100,000 threshold reached the 105 mark on Tuesday, August 23rd. This is its highest level since March 29, according to data from the Santiment platform. Note that the price of CHZ increased by almost 12.5% on the same day.
The parallel between the rise in whale activity, but also in volume and of course price, suggests that most major investors made the decision to hoard the token following the announcement of the new CHZ blockchain. 2.0.
If we observe the curve on a slightly larger scale, we can see that Chiliz has benefited from a very strong enthusiasm which suggests that the uptrend could possibly continue for a few more weeks.
For the moment, the token has outperformed Bitcoin and Ethereum over the past few weeks, but it is impossible to confirm with certainty whether this progress will continue over time.
The Merge, namely the update of the Ethereum blockchain to a Proof of Stake system, is announced for the month of September. It is likely that its impact will be very strong on the crypto landscape and will affect many blockchain projects, including Chiliz.
The return of the championships in Europe
Of course, the last reason that positively impacts the course of the CHZ is the return of the championships to Europe. We told you about it recently, but if the CHZ token is outperforming the market, it is thanks in particular to the return of the football season.
In addition, the arrival in a very short time of the Football World Cup in Qatar could, of course, bring a boost to the CHZ token.
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