August was yet another difficult month for cryptocurrencies as the market continued to witness plummeting prices. While the overall market leader, Bitcoin, lost about 17%, slipping behind the $20k mark more than once, close contender Ethereum dropped by about 11%.
But the crypto sector does not just involve just Bitcoin and Ethereum. There are some great crypto names like Chiliz, Nexo, and Ankr that gained massively in August. These cryptocurrencies ducked the downward trend through huge gains.
Here’s a slight overview of how significant these gains were:
- Chiliz gained over 50% during August as it marked its final move from Ethereum.
- Nexo gained over 30% on platform developments and token buyback.
- Ankr increased over 14% earnings following their half-a-million investment announcement.
So, here is a closer look at why Chiliz, Nexo, and Ankr Are August's Biggest Crypto Gainers. Should You Buy?
Chiliz (CHZ)
Chiliz exchange is a crypto platform that allows users to purchase and sell Socios.com-issued Fan Tokens. It is the first crypto exchange in the world that tokenizes sports and entertainment. This allows many crypto enthusiasts and fans to sell, trade, and purchase Fan Tokens of the biggest stars in the entertainment and sporting sector.
The Fan Tokens on the Chiliz Exchange are paired against the platform's native token, CHZ. The token scored high on the news with the possibility of moving into its own blockchain. This move, if successful, will reduce the transaction cost significantly on the network while also improving utility.
Many sports and crypto enthusiasts can utilize CHZ to purchase their favourite teams' tokens while accessing exclusive community experiences and products.
For instance, fans can meet their favourite sports heroes or even vote on the team. The Chiliz network has already amassed about 120 partnerships with various sports teams, with the token available on many well-known crypto exchanges.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Nexo (NEXO)
The Nexo platform is currently a leading crypto borrowing and lending platform with a massive global user base, particularly in Europe. Furthermore, it is considered part of the “big 3” or “top 3” lending platforms, along with Celsius and BlockFi. Thus, it has garnered a positive reputation among both FinTech and crypto communities, making it one top reason why Chiliz, Nexo, and Ankr Are August's Biggest Crypto Gainers.
The platform’s native token first struggled with the news of extreme challenges faced by many crypto lending platforms such as Celsius, Voyager, etc. However, Nexo has constantly touched upon how it doesn’t follow the same risk as its competitors.
Hence, Nexo’s current price increase further highlights its message of reassuring its investors. In addition, the platform also announced another repurchase of $50 million tokens courtesy of their buyback program. These repurchased tokens will remain in reserve and are qualified as interest payouts.
The idea here is to minimize volatility and raise long-term growth potential. This news and the decision to add two new tokens, along with the support of the ETH Merge, resulted in its price hike in August.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ankr (ANKR)
Ankr is known as a popular decentralized Web3 infrastructure provider. Their protocol is created to help dApps (decentralized applications), stakers, and developers on 50 various Proof-of-Stake (PoS) networks engage easily with a group of blockchains.
This project is deemed most famous through its RPCs (Remote Procedure Cells), allowing users to access data from several chains. Additionally, Ankr is behind the development of a few of the primary infrastructures of the Binance chain.
The platform currently supports about 24 networks with 30,000+ distinct developers backing Ankr’s infrastructure. Additionally, the platform receives about 7.2 API requests regularly, thus making it part of the top 3 leading Web3 infrastructure providers.
Furthermore, Ankr spiked high this month after Binance (BNC) labs announced an investment of half a million for the Web3 infrastructure project. The platform is further catapulted by its interoperable nature, which connects it to different blockchains. Ankr’s technology can make the staking process much more simplified and can also help decentralized gaming and NFT projects. It’s like a fusion of blockchain technology and Amazon cloud.
This wraps up our closer look at why Chiliz, Nexo, and Ankr Are August's Biggest Crypto Gainers. So, the big question is, should you buy these cryptos? Let's find out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Should You Buy?
A year ago, many crypto investors may have been forgiven for being a little too ambitious. After all, prices soared high, and some instances of short-term trading also paid off. But, such activity is still risky even during a good season. Hence, it’s not always the best choice to make such an investment, especially at times like this.
It's crucial not to make an investment simply based on a price hike. Crypto pieces tend to be quite volatile, so there’s always a good possibility that prices will fall again at any time. So, it’s better to put in some research and figure out how it may perform long-term and also account for competitors.
These smaller altcoins are comparable to penny stocks, meaning they can produce high gains and risk. Any investor needs to understand and manage such risk, especially in current times when crypto prices tend to dip relatively low.
Hence, despite the potential of interesting crypto projects like Chiliz, Nexo, and Ankr, it is essential to consider what may happen in the long run rather than focusing on the hype. If you plan to invest, only put the money you’re willing to lose and ensure it only represents a tiny percentage of your investment profile.
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