The value of Chiliz (CHZ) has risen by 150% in just one month, and counting from the bottom, reached back in May, it is recording a jump of nearly 230%. What’s behind such an impressive rally?
Chiliz (CHZ) the leader of the increases
Chiliz (CHZ) occupied the vicinity of 60th place among projects with the highest market capitalization just a month ago. Meanwhile, at the time of writing this text, it is trading up 20 positions, thus pointing to the 40th place. For this project, such a sizable move, during the ongoing bear market, is quite an event. As one can easily guess, there are solid reasons behind it.
One of the factors driving the rally is the upcoming upgrade of the network to CHZ 2.0. In a way, this is confirmed by the CEO of the project, Alexandre Dreyfus, who on August 22 shared with his community on Twitter the information that triggered another surge. It read as follows:
“We don’t have to rely only on ERC20 or ERC721 equivalents forever. At Chiliz, we think we can innovate a bit beyond interchangeable token formats. Because we work with more than 100 of the world’s largest brands, it’s easier to implement and scale.”
Significant whale movement
The changes at Chiliz have not escaped the whales, who, capitalizing on the hype for the popular fan coin, have also decided to join the trade. Information about them is presented by the analytical platform Santiment. According to data from specialists there, the number of CHZ trades worth more than $100,000 reached 105 on August 23.
“Chiliz was among the top 40 crypto assets in terms of market capitalization and price growth of 150% over the past four weeks. Whale transactions reached the highest value on the network since March 29. Even as whales take profits, CHZ’s rally may continue.”
Catalyst a confluence of factors
The transition of Chiliz to Chiliz 2.0 and the simultaneous disconnection from Ethereum has long been discussed by project representatives. Recently, however, the discussions have been much more lively. Through the official Twitter profile, there has been a lot of talk about the phases of experimentation with the Scoville testnet. In recent days, the topic was the fifth phase, called Pequin. Now more attention is being paid to the sixth phase, called Malagueta. The seventh phase, however, will be the most significant, representing the migration to CHZ 2.0 and the launch of the mainnet. This is expected to happen later this year.
Another aspect reinforcing the bullish bias towards CHZ is the “cup and handle” formation, which is considered a trend reversal signal. In response to fundamental conditions, in the opinion of many analysts, this is precisely the structure revealed by the chart. This may result in further continuation of increases.