Chiliz (CHZ) price is stuck around $0.12 as network growth slows down and sell-orders pile up on exchanges. The fan token platform may lose momentum as the European football season ends in May.
Chiliz (CHZ) is the native cryptocurrency of the Chiliz blockchain, which powers the Socios sports and entertainment platform. The platform allows fans to buy fan tokens that give them various rewards and exclusive privileges from their favorite sports teams and clubs.
Most fan tokens issued on the Chiliz blockchain are affiliated with European football clubs, nearing the end of their season in May 2023.
However, CHZ’s price has stagnated at around $0.12 since April 26, showing fans’ lack of new demand and enthusiasm.
On-chain data reveals that the Chiliz network growth has declined steadily while the sell-orders on exchanges have been increasing disproportionately. This could spell trouble for CHZ’s price in the coming weeks.
Chiliz fans are losing interest
Chiliz (CHZ) is used as a means of payment within the Socios platform. It enables fans to purchase fan tokens that grant them access to various rewards and exclusive privileges.
However, with the current football season approaching the end of May, CHZ needs to attract new fans.
The number of new participants joining the Chiliz network has dropped significantly since early April, according to on-chain data provided by Santiment. The chart below shows how Chiliz Network Growth has fallen 61%, from 319 to 124 new wallet addresses, between April 8 and May 2.
Network growth measures the number of new wallet addresses created on a blockchain network. As seen above, new users are reluctant to join the network when it falls consistently.
This could be due to diminishing fan interest, as the services and privileges offered on the Socios platform may be in low demand over the next few weeks.
Current Holders Are Looking To Sell On a more bearish note
The order books of exchanges show that the volume of CHZ sell-orders has surpassed buy orders. Currently, sellers have placed active orders to sell 56 million CHZ coins.
Meanwhile, buyers have only placed orders to buy 38 million CHZ coins. This indicates a bearish sentiment among holders looking to exit their positions before the price drops.
