Sharp decline in fan tokens: EURO2024 did not live up to expectations

EURO2024 could not create the expected impact for the Fan token market.

On the surface, it can be assumed that fan tokens will perform well in light of this quadrennial event. However, the exact opposite of what was expected happened.

Block, which monitors the performance of fan tokens Sport token index, was one of the worst performing categories in the market this week.

The fan token market remained insufficient even during this period

The index has fallen significantly since the tournament started on June 15, with the cumulative market value of these tokens falling by 12.8 percent at the time of writing. In the same period BTCWhile the price of fell by 3 percent ETHThe price of rose by approximately 1 percent.

This negative performance can be partially attributed to adverse market conditions. With this, BTC Compared to the declines experienced by , the sports token index underperformed by a factor of three. This sharp setback highlights the selling pressure in fan tokens amid the current market downturn.

It is worth noting that the fan tokens in this index represent individual football clubs rather than international sports federations. Even so, these tokens could be expected to show relative strength during a major football event. After all, the UEFA European Championship is the prime time for football fans to rally around their favorite squads, which will theoretically increase the cost of the respective fan tokens.

But this was not the case. The tournament could not create the excitement expected. If major sports events fail to increase the value of relevant crypto assets, the utility and investment potential of fan tokens is questioned.