On Tuesday, Chiliz (CHZ), a Layer-1 blockchain native token designed to enhance fan engagement in sports and entertainment, experienced a sharp upward movement in its market price, rallying by more than 10%. This price action distinguished CHZ as the third most successful digital asset among its peers within the preceding 24-hour trading window.
Specifically, CHZ outperformed major cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH), which only registered modest increases of approximately 1.21% and 0.58%, respectively. This divergence highlighted CHZ's notable short-term strength in contrast to the relative stability of the leading tokens.
The surge in spot price was accompanied by increased activity in the derivatives market. Open interest in CHZ futures contracts rose by more than 8% over the same timeframe, indicating heightened engagement from traders. Furthermore, data from the Long/Short Ratio on Binance revealed that the proportion of traders taking bullish positions on CHZ expanded from 52% to 54%, reflecting growing optimism toward the token’s future prospects.
The recent gains can be linked to the launch of the Decentral Protocol earlier in the month by Chiliz’s parent blockchain. This innovative protocol grants football clubs the capability to borrow stablecoins by using future media rights as collateral. This functionality aims to provide new financing opportunities within the sports industry through blockchain technology.
Chiliz, established in 2018, operates as a blockchain platform that empowers sports and entertainment brands to create digital assets such as NFTs, Fan Tokens, and decentralized finance (DeFi) products. These tools enable deeper interaction between brands and their fan bases within a Web3 environment. The company also issues Fan Tokens through its engagement-focused application, Socios.com, which facilitates fan rewards and involvement.
As of the current report, CHZ is trading at approximately $0.04067, demonstrating a daily price increase of roughly 10.27%. Despite this short-term momentum, the token’s performance since the start of the calendar year has been disappointing, with a loss exceeding 50% of its initial value.