Chiliz (CHZ), the native token of the Chiliz Chain built for sports and entertainment, jumped 20% today to trade around $0.045. While much of the crypto market is still struggling to recover, CHZ is moving in the opposite direction.
So, what’s driving this sudden surge?
New Chiliz Protocol Boosts Demand for CHZ
Chiliz, best known for powering fan tokens used by major football clubs and sports brands, has launched the Decentral Protocol on the Chiliz Chain. This new system allows football clubs to tokenize future media and broadcasting revenues and use them as collateral to access stablecoin loans.
To support this, a $1 million USDC liquidity pool has gone live, offering investors around 12% APY. This setup directly increases demand for CHZ, as the token is required to pay transaction fees on the Chiliz network.
Trading Volume Spike Signals Fresh Buying
CHZ also saw a massive jump in trading activity over the last 24 hours. Trading volume surged by 153%, reaching nearly $175.48 million. This kind of sharp volume increase usually shows that new buyers are entering the market, not just slow price movement.
As global sports leagues prepare for upcoming seasons and events, traders are once again rotating into sports-related crypto tokens like CHZ.
- Also Read :
- Zcash News: Cypherpunk Adds 56,000 ZEC in Latest Treasury Move
- ,
Short Liquidations Add Fuel to the Rally
Another reason behind CHZ’s sharp rise is short liquidations. Coinglass data show that traders betting against CHZ lost around $287,000, as the price moved up faster than expected.
In total, $376,000 worth of CHZ positions were liquidated in the past 24 hours, with nearly 70% coming from short traders.
As these positions were forced to close, extra buying kicked in, helping CHZ climb even faster in a short time.
Chiliz Chart Signals More Upside Ahead
After months of slow movement, Chiliz (CHZ) has finally broken out of a long downtrend. The chart now shows growing buying strength, with momentum improving steadily.
Well-known trader Captain Faibik points out that CHZ is testing a key breakout area. The first resistance lies between $0.048 and $0.050. If the price breaks above this zone and holds, CHZ could move much higher.
In that case, the next major target is near $0.082, which would mean almost a 95% upside from current levels.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
CHZ price surged due to new utility from the Decentral Protocol launch, which boosts demand for CHZ, combined with a spike in trading volume and short liquidations forcing rapid buybacks.
It lets sports clubs tokenize future media revenues and use them as collateral for stablecoin loans on the Chiliz Chain.
All transactions on the Chiliz Chain require CHZ fees, so more protocol activity directly increases demand for the token.
CHZ shows bullish momentum with improved buying strength, high volume, and positive catalysts like the Decentral Protocol. While crypto is volatile, the breakout and sports season potential make it appealing for those bullish on SportFi—but always research and consider risks before investing.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Credit: Source link