In particular, as of October 31, the top five new cryptocurrencies tracked by CoinMarketCap controlled a cumulative market capitalization of over $1.4 billion within five days of being listed on the platform. Web3-focused crypto project Melody (SNS) sits top with a capitalization of $762.3 million, trading at $0.12. The token is built on the BNB blockchain. Retail-centered Kingaru (KRU), which has $256.1 million in market cap trading at $0.2 is in the second spot. Elsewhere, staking and non-fungible token (NFT) asset BULL BTC CLUB (BBC) accounts for a market cap of $158.9 million, followed by decentralized applications (dApp) development platform Nirvana Chain (NAC) with a total market worth of $138.01 million. Interestingly, the fan token for the Italian National Team (ITA) trading at $3.09 has a capitalization of $92.66 million powered by the Chiliz (CHZ) network.
Drivers of capital inflow in new assets
Indeed, the significant market cap held by the assets amid a depressed market is key to the cryptocurrencies’ long-term potential. Notably, investors tend to trust assets with a powerful utility that can drive high adoption alongside a surge in value. The market cap also highlights the risk associated with cryptocurrencies. In some cases, assets that recorded significant capital inflow in the early stages have turned out as scams. Furthermore, investors are probably getting a stake in the assets to profit in future, with experts maintaining that the current bear market is short-lived and is part of the general growth trajectory. There is an overall consensus among crypto proponents that the bear markets offer room for building formidable products intending to follow the growth trajectory of assets like Bitcoin (BTC) and Ethereum (ETH). In general, the 2022 market has not swayed developers’ intentions, with a Finbold report indicating that over 5,000 new assets have emerged this year alone.
Emergence of fan tokens
Furthermore, the emergence of the Italian football team fan token highlights the recent growth of such cryptocurrencies. Fan tokens are standing out as a critical component of the sporting world, driving sponsorship and marketing campaigns. At the same time, the tokens are considered tools for football teams to implement fan engagement strategies. Activities around fan tokens have surged ahead of the FIFA 2022 World Cup slated for Qatar from November 20. Notably, the interest has translated into assets like Chiliz gaining momentum. Chiliz is a tokenized voice platform that seeks to give sports fans more agency while assisting them to manage esports organizations, teams, and their favorite sports. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
