Nonfungible tokens (NFTs) continue to see increased utilization as the possible applications of the technology have begun to be recognized in sectors ranging from sports entertainment to real estate.
One subsector of this market that has seen a spike in momentum on Feb. 28 are fan token projects, protocols that allow their holders to participate in the governance of their favorite sports brands and receive specialized NFTs and other unique redeemables.
Data from Cointelegraph Markets Pro and TradingView shows that the three biggest gainers over the past 24-hours were FC Barcelona Fan Token (BAR), AS Roma Fan Token (ASR) and Atletico De Madrid Fan Token (ATM), which are all fan tokens that are part of the Chilliz (CHZ) protocol.
Three reasons for the spike in the price of these fan tokens include a partnership between Socios and the Union of European Football Associations (UEFA), the increased attention on football as World Cup qualifying matches are ongoing and the popularity of NFTs being combined with the most-watched sport on the planet.
A recently announced partnership between UEFA, the governing body for European football, and Socios, a protocol that focuses on the creation of fan tokens, could be one driver of the current rally.
The partnership is currently contracted through 2024 and establishes Socios as the regional sponsor for the Champions League, which is the most well-known competition held by the UEFA.
Through this collaboration, Fan Tokens will be made available for free to Fan Token holders of clubs participating in the Champions League as well as the Europa League and the Europa Conference League.
Club fans who hold Fan Tokens have the opportunity to win VIP experiences or free NFTs that drop during live gameplay as long as they are holding their tokens on the Socios app.