The market is currently trading sideways after more than 6 months in the red. Bearish sentiment also remains strong as macroeconomic factors paint a picture of a global economy that could be headed for a recession. However, some factors paint a bullish picture for cryptocurrencies and point to a market headed for a major recovery.
One of them is data showing that 40% of US investors are now buying crypto. The data shows that investors are driven by the need to preserve their wealth amid the lingering uncertainties in the market.
Not only is this a huge validation for cryptocurrencies, but it could also spark a rally with cryptocurrencies returning to their most recent all-time highs. That’s because US investors have the money, a factor that could drive them up the market in August. This possibility is bolstered by the fact that Bitcoin remains strong above the $20k support despite the market turbulence.
Judging by this market potential, here are some top cryptocurrencies to keep an eye on in August.
Binance Coin (BNB)
Binance Coin (BNB) got off to a great start in August. At the time of writing this article, BNB rose 6.8%, outperforming most of the top cryptocurrencies. This follows a string of good news in the past 24 hours.
One of the most significant is that Binance has entered the Argentine cryptocurrency prepaid market. With more people in South America using crypto debit cards, the turnout is likely to be huge. Since BNB is the native cryptocurrency for payments in the Binance ecosystem, this move translates into a potential increase in demand.
This potential is reflected in the price and BNB could remain strong throughout the month. This momentum is bolstered by Binance Coin’s pressure from the $300 resistance. This could give more buyers confidence in BNB in the near term.
Polygon (MATIC) is still basking in its glory from last month when it emerged as one of the best performing cryptocurrencies. This month, upward momentum is likely to remain strong for Polygon. That’s because the Ethereum merger is slated for next month, and Polygon, one of the larger Ethereum tier-2, is likely to benefit from FOMO ahead of the merger. For this reason, Polygon remains undervalued in August, even after its most recent rally.
Flow (FLOW) is one of the best performing cryptocurrencies in August so far. Flow’s rally has a lot to do with the news that Facebook’s parent company Meta is backing it. Meta supports NFTs and other digital collectibles on the Flow blockchain.
Considering that FLOW is still trading at huge lows compared to its all-time highs. FOMO around this news could see this cryptocurrency as one of the best performing cryptos in August. It wouldn’t be surprising either if FLOW ends the year as the first cryptocurrency to retest its all-time highs.