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In March 2021, Chiliz (CHZ) hit an all-time high of $0.988 at the height of a crypto bull run. From its all-time high in March 2021, the project has seen a drastic 84.6% drop in value. This significant plunge has left investors and cryptocurrency enthusiasts scratching their heads, wondering what could have caused such a dramatic decline.
Investors and traders alike have been trying to figure out what happened to CHZ and why it plummeted so sharply in such a short time frame. Read on to explore the factors that have contributed to CHZ’s decline and examine the factors that might affect its future performance.
Historical Data Behind The Chiliz (CHZ) Coin
To begin with, it is important to note that Chiliz has been on an uptrend for most of 2021. The cryptocurrency had gained more than 430% since the start of the year, making it one of the top performers in the crypto space. The majority of this increase was driven by news of a major partnership between Chiliz and Juventus FC, where the club opened up a dedicated fan token called ‘JUV’. This announcement caused a surge in demand for CHZ as investors sought to get their hands on some of these tokens before they were sold out.
However, things took a turn for the worse after Chiliz’s all-time high. In just two weeks, CHZ lost over 84% of its value. So what could be driving such an abrupt change?
Why Chiliz (CHZ) Fell Drastically
First off, it appears that some investors may have taken profits from their long positions once CHZ reached its peak. With so much momentum behind the cryptocurrency and no signs of slowing down, many who had invested early believed that there was no better time to take profits than now. This sudden influx of sell orders likely caused a cascade of liquidations among leveraged traders and helped accelerate the downward spiral.
Another contributing factor may have been Bitcoin’s own dip in mid-April, 2021. As BTC fell from its $60K highs to around $52K, many altcoins like CHZ followed suit due to their correlation with Bitcoin’s price movements. This also comes at a time when institutional interest in Bitcoin seems to be waning while retail traders are still heavily involved in the market – something which could further depress prices across the board if sentiment remains bearish.
It’s also possible that competition from other cryptocurrencies has taken away some of Chiliz’s market share and led to its decline in price. With dozens of new coins appearing on the market each week, it can be difficult for any one coin to remain competitive in terms of price and popularity. Many investors are jumping ship and investing their money into different tokens with better upside potential than CHZ.
Another factor to consider is the potential legal issues surrounding Chiliz’s token offerings. In recent months, regulators have become increasingly concerned with cryptocurrency-related activities, particularly those involving unregistered securities or money laundering. These concerns could be causing investors to become wary about holding CHZ tokens without proper authorization or permission from authorities, leading them to sell off their holdings over the fear of being penalized by regulators.
Finally, it is worth noting that Chiliz’s fall from grace happened following the crash of FTX which led to a sense of fear from investing in the crypto market. Seeing the fall of a major exchange such as FTX following the numerous allegations and wrongdoing in FTX, investors seem uneasy about investing in the market, especially when it comes to cryptocurrencies. Even the FIFA World Cup, which had high hopes in terms of increasing the valuation of sports coins, are left with drudging in the ground.
What The Future Of Chiliz (CHZ) Holds
Looking ahead, it remains unclear what direction CHZ will take from here on out although there are signs that investor sentiment could swing back towards being bullish if governments decide to open up regulations surrounding cryptocurrencies or if major players within traditional finance move into this space en masse – something which seems more likely by the day as countries become more supportive of digital assets.
For now, though, investors should remain cautious and watch out for any developments regarding regulation or news involving big names entering crypto markets as these could prove to be catalysts for Chiliz’s future performance. The current state of the market combined with competition from other cryptocurrencies and potential regulatory issues surrounding its tokens could all be factors that ultimately affected its price performance.
Fortunately, there are steps that Chiliz can take to reverse this trend and help restore investor confidence in its products and services – such as ensuring compliance with applicable laws and regulations or introducing new features or products that offer greater value than competing projects – which could lead to a more promising future for CHZ holders.
Top Crypto Alternatives To Watch Out For
Dash 2 Trade (D2T)
Dash 2 Trade’s pre-sale season saw a massive investment of over $9.6 million. The reasons for D2T’s rise include the growing use cases of the analytics-driven ecosystems and the service it provides along with the ease of use it offers to all investors. Most importantly, the D2T comes with enhanced quality of life and premium features.
In addition, the token has impressive community support, which is helping to increase its popularity and increase in price among investors of all ages and experiences who are aware of the massive impact of this cryptocurrency.
RobotEra (TARO)
Sandbox-based gaming platform RobotEra, aka TARO, is a platform for creating and interacting with characters in a science fiction ecosystem controlled by robots. By creating an NFT bot based on TARO, users can purchase and interact with properties in the bot world. They can also create characters that can interact with other robots.
People interested in building a portfolio for their future are seeking out TARO because of its lower fees and fast transaction speed.
Calvaria (RIA)
Calvaria is a crypto-based afterlife-inspired battle card game that combines all the retro qualities that made such battle card collection games so popular and addictive in the past. Calvaria combines stunning visual art, fluid gameplay, strategic depth, and all the benefits of blockchain, and card rarity in this digital gameplay environment.
Players can interact online instead of meeting other players in person to play and trade. At the same time, unlike physical and digital games that are not based on blockchain, Calvaria will provide users with excellent gaming income and passive income opportunities.
Given the size of the potential market (millions of card game fans worldwide), investors should consider an early stake in Calvaria’s RIA token, which will be used to power Calvaria’s games for the ecosystem. With a 75% increase in RIA tokens just weeks after launch, the project has already managed to raise over $2 million making it one of the best presales of the year.
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