Spain’s Victory in Euro 2024 Can’t Save SNFT Token Price

Spain’s Victory in Euro 2024 Can’t Save SNFT Token Price

In the past few hours, the price of the Spanish national team’s Fan Token (SNFT) has experienced a sharp decline of -22%. This drop comes despite the good news for the country’s football team. On Sunday, Spain defeated England in the final of the tournament to become European champions for the fourth time.

In this context, it is worth questioning the reasons for the token’s drop despite such a significant victory. Approximately 24 hours after the end of the match, the token rapidly lost value, dropping to $0.02462 per unit, according to CoinMarketCap.

The lack of investor enthusiasm for this token contrasts with other similar tokens, which are showing green numbers. The reason could be speculative selling that anticipates a drop in enthusiasm for the team once the tournament ends. In this sense, the celebrations are the peak moment before a period of low activity for the Spanish team. This may have led numerous investors to adopt a strategy of buying on the rumor and selling on the news. As a result, the token presents a notably bleak outlook for the coming days. The Spanish national team will see activity again in September in the UEFA Nations League.

Will the SNFT Token Price Recover?

As mentioned above, the next appearance for the Spanish national team is in September in a match against Serbia. Until then, at least theoretically, a recovery in the Fan Token price (SNFT) cannot be expected.

It is worth noting that in the Nations League, the Iberian team will play in a relatively manageable group. Their rivals will be Denmark, Switzerland, and Serbia, meaning the chances of their token recovering by then are high. This suggests that the current low price could be an opportunity to take an ideal position before the tournament.

According to research cited by CoinDesk, sports team tokens tend to rise before events and then deflate. This is precisely what happened with the token representing the Spanish team. In the days leading up to the final of the tournament, the token rose more than 70% to $0.03845 per unit. This phenomenon also occurred with several tokens during the 2022 FIFA World Cup.

This information was likely considered by investors who placed larger bets on the token and then sold. In the coming weeks, the bottom of the SNFT token price will likely be known, which could be followed by a partial recovery.