Revealed: How football fan tokens are performing through the FIFA World Cup

And with the World Cup currently in full swing, the market for football fan tokens is also heating up. Tag along as we quickly discuss how some of the top fan tokens have performed during the mega footballing event and analyze trends surrounding this unique combination of crypto and sports.

To begin with, the trading volume of fan tokens saw a massive increase leading up to the World Cup. According to insights a from Paris-based data firm, Kaiko, the trading volume for fan tokens increased from $32 million in Oct to $300 million in Nov. This 10-fold increase is an encouraging sign for fan tokens.

However, in the same breath, the price valuations for most football fan tokens have plummeted significantly during the same period.

For instance, the Argentine Football Association Fan Token (ARG) is down 30.66 percent over the last week. It took a sharp plunge after the team's shock defeat to Saudi Arabia on Nov 22, falling from $7.46 to $5.15 on the day of the loss. However, what's surprising is that ARG failed to make a comeback even after the team pulled out a win against Ghana.

It's a similar story for the Brazil National Football Team Fan Token (BFT), which is down a whopping 55 percent over the last seven days. This is quite surprising given that Brazil has performed exceptionally well in the tournament so far, winning both of its matches and topping its group.

Portugal's National Team Fan Token (POR) isn't doing well, either. POR has lost more than 32 percent of its value in the last seven days, despite the team winning both its group-stage matches.

Spain is another token that showed promise leading up to the World Cup but has been in freefall since it began. The Spain National Fan Token (SNFT) is down a massive 62 percent for the week and has lost more than half of its value since the start of the year. This is despite Spain topping its group in the FIFA World Cup.

Even Chiliz (CHZ), the issuer of most fan tokens, is currently facing headwinds. CHZ hit a 7-month high earlier this month in the buildup to the tournament. However, it has handed back most of its gains since then and is currently trading at $0.1648. That's a 10 percent drop for the week.

The only fan token in the green is the Croatian FF Fan Token (VATRENI). The runners-up from last year's FIFA World Cup have continued their form into this edition of the tournament as well. They won against Canada, drew against Morocco and currently top their group table. The stellar performance is also reflected in the price of the team's fan token. VATRENI is up 3.50 percent for the week and is the only national fan token in the green during that period.

As we can see, barring VATRENI, most coins did pretty well leading up to the World Cup but began tumbling once the tournament started. This is aptly reflected in the market capitalization of fan tokens, which rose to $400 million during the tournament's first few days. This was a massive increase from the $250 million range it was hovering within ten days before kickoff. However, with prices plummeting, the market cap of fan tokens quickly fell back to the $300 million range, according to data from CoinGecko.

One positive that can be drawn from an otherwise grim picture is that POR and ARG have registered massive YTD gains. Portugal's fan token is up by 260 percent since the start of the year, whereas ARG has registered a 100 percent increase during the same period. This is a good sign for investors and adds another level of rivalry to the Messi versus Ronaldo showdown.

The main reason behind the sinking price valuations could be the collapse of FTX and the contagion effect it has had on the entire market. Most coins have registered substantial losses over the last couple of weeks, and it could take some time to recover from such a large black swan event. Fortunately, the FIFA World Cup is only just getting started. Moreover, all of the teams mentioned above have a chance of progressing to the next stage of the tournament, and good performances could spell a turnaround for their fan tokens.