<a href="https://www.cryptoknowmics.com/glossary#altcoin">Altcoins</a> are seeing a decent uptrend recently. The market expects FED to take a slow and soft approach in its future policy decisions. The downfall in commodity prices might be an indication of inflation coming down. So, if you have been thinking of investing in Altcoins after a recent relief bounce, here is a list of the <strong>top 5 Altcoins</strong> of the week.
<h2>1. Filecoin (FIL)</h2>
Anyone can save and retrieve data online, thanks to the peer-to-peer Filecoin network. Files are consistently and constantly saved and retrieved for however long a user requests, thanks to built-in economic incentives.

The amount of storage space available and how much it costs to store and retrieve files are not under the authority of a single business or organization. Instead, anyone with internet access can participate in open marketplaces for storing and retrieving files, courtesy of the Filecoin <a href="https://www.cryptoknowmics.com/news/decentralized-cloud-storage-the-future-of-data-management-is-blockchaine/" target="_blank" rel="noopener">storage</a> network.

It carries out these transactions using its native coin (FIL). Similar to bitcoin and ether, the native crypto token of the Filecoin network is the Filecoin token (FIL). Holders of tokens can use FIL to interact with and conduct transactions on the Filecoin network. Users specifically pay miners in FIL to store, distribute, and retrieve their data.

Additionally, storage companies use FIL as collateral to offer a minimal degree of service assurance, which diminishes if an agreement with a customer falls through.

$FIL currently trades at $10.81 and has a market cap of $2.4 billion. $FIL token had an impressive prime pump in the last few days. Most bids for the $FIL token are coming from Asian exchanges. Filecoin is the market leader in the storage category of <a href="https://www.cryptoknowmics.com/news/startup-community-launch-house-raised-10m-fund-with-web3-in-focus/" target="_blank" rel="noopener">Web3</a>.

<img class="alignnone wp-image-244279 size-large" src="https://www.cryptoknowmics.com/news/wp-content/uploads/2022/08/pricechartfil-1024x558.png" alt="Price chart of Fil" width="1024" height="558" />
<h2>2. Oasis Network (Rose)</h2>
Oasis Network is a Layer 1 Proof-of-Stake (PoS) decentralized network. The Consensus Layer and the ParaTime Layer are its two main parts.

The Consensus Layer is a decentralized network of validator nodes that manages a scalable, high-throughput, secure proof-of-stake consensus. The ParaTime Layer hosts multiple parallel runtimes (ParaTimes), representing a replicated compute environment.

The Oasis Network offers secretive smart contracts, enabling <a href="https://www.cryptoknowmics.com/news/brave-browser-added-solana-based-dapps-in-its-version-1-41/" target="_blank" rel="noopener">DApps</a> to leverage private information and opening up new use cases for blockchain technology. At the Consensus Layer of Oasis Network, the $ROSE token is used for transaction fees, staking, and delegation.

$ROSE currently trades at $0.092 and has a market cap of $434 million. $ROSE token price has jumped almost 2x in the past few days. On 28 July, Oasis announced its collaboration with <a href="https://www.cryptoknowmics.com/news/ftc-sues-meta-citing-a-violation-of-antitrust-laws/" target="_blank" rel="noopener">Meta</a> and introduced its platform to the world for evaluating the fairness of Meta's goods while upholding individual privacy.

Market participants are excited about this partnership, and their interest is clear from the recent price action of the $ROSE token.

<img class="alignnone wp-image-244280 size-large" src="https://www.cryptoknowmics.com/news/wp-content/uploads/2022/08/pricechartrose-1024x557.png" alt="Price chart of Rose" width="1024" height="557" />
<h2>3. dYdX</h2>
<a href="https://www.cryptoknowmics.com/news/crypto-exchange-dydx-is-building-its-own-l1-blockchain-on-cosmos/" target="_blank" rel="noopener">dYdX</a> is a decentralized exchange that offers users access to essential financial products such as perpetual, margin and spot trading, lending, and borrowing. With the help of dYdX, traders can short-sell tokens, increase exposure by longing with leverage, or move swiftly by earning interest on deposited tokens. The platform also provides traders with off-chain order books with on-chain settlement.

dYdX combines the speed and usability of a centralized exchange with the security and transparency of a decentralized one by using StarkWare's Layer 2 so that users can trust centralized exchanges when they trade this way. With the governance token dYdX, the dYdX Protocol community can now fully own and control the Layer 2 protocol.

By allowing shared control, dYdX synchronized incentives between traders, liquidity providers, and Layer 2 protocol partners. The dYdX platform offers robust governance, incentives, and a <a href="https://www.cryptoknowmics.com/news/crypto-services-app-abra-now-supports-on-eth2-staking/" target="_blank" rel="noopener">staking</a> ecosystem, all intended to promote further decentralization and evolution of the dYdX Layer 2 protocol.

Alongside dYdX, two staking pools that support liquidity and security on the dYdX Layer 2 protocol were also created. Reward programs for trading, liquidity provision, and prior use of all dYdX protocols will aid in the dYdX Layer 2 protocol's expansion and adoption.

$dYdX currently trades at $2.70 and has a market cap of $292 million. $dYdX chart is forming a clear higher high and higher low market structure, and it appears ready for a pump.

<img class="alignnone wp-image-244287 size-large" src="https://www.cryptoknowmics.com/news/wp-content/uploads/2022/08/pricechartdydx-1024x521.png" alt="pricechart of dydx" width="1024" height="521" />
<h2>4. Synthetix (SNX)</h2>
Synthetix is a decentralized platform for issuing synthetic assets, a <a href="https://www.cryptoknowmics.com/news/best-ethereum-layer-2-solutions/" target="_blank" rel="noopener">Layer 2 scaling solution</a> built on Ethereum. The Synthetix Network Token ($SNX), which, when locked in the contract, authorizes the generation of synthetic assets, serves as security for these virtual assets (Synths).

Users can make conversions between Synths directly through the smart contract using this pooled collateral architecture, doing away with the requirement for counterparties. This approach resolves the liquidity and slippage problems that DEXs have. Synthetix supports fictitious fiat money, long and short cryptocurrency positions, and commodities.

Owners of SNX are encouraged to stake their tokens because integrators pay them a pro proportionate share of the fees made from activity on Synthetix (Kwenta, Lyra, Curve, dHEDGE, and many others). SNX token's value derives from the privilege of participating in the network and capturing fees made from Synth exchanges. Having <a href="https://www.cryptoknowmics.com/news/snx-technical-analysis-recovering-prices-prepares-to-exceed-to-3-5/" target="_blank" rel="noopener">$SNX</a> is not necessary to trade on the Synthetix network.

$SNX currently trades at $3.76 and has a market cap of $853 million. $SNX has been performing better even against Eth token pair. Their upcoming Synthetix V3 update and $SNX stakers receiving around $400 k from protocol usage is the reason behind this price action.

<img class="alignnone wp-image-244289 size-large" src="https://www.cryptoknowmics.com/news/wp-content/uploads/2022/08/pricechartsnx-1024x549.png" alt="price chart of snx" width="1024" height="549" />
<h2>5. Optimism (OP)</h2>
The primary function of Optimism is to batch transactions on the network. Optimism enables customers to take advantage of decreased gas rates on transactions carried out on the Optimism network through the <a href="https://www.cryptoknowmics.com/news/could-optimistic-and-zero-knowledge-rollups-transform-and-improve-network-performance/" target="_blank" rel="noopener">Optimistic roll-up technology</a>. The project's native token is called $OP.

OP's current use cases include the following:
<ul>
 	<li>Governance: OP token holders participate in a bicameral structure that allows them to vote on specific governance issues through a body they form.</li>
 	<li>Rewards and Ecosystem Funding: Users and protocols that support the Optimism ecosystem are airdropped OP tokens by the OP Governance Fund for future projects building on Optimism.</li>
</ul>
$OP currently trades at $1.652 and has a market cap of $347 million. $OP token was one of the best performers of the last week. Layer 2 narrative is picking up, and $OP is one of the top Layer 2 solutions, attracting investors and capital. TVL is continuously rising on Optimism, and DApps on Optimism are also seeing adoption.

<img class="alignnone wp-image-244290 size-large" src="https://www.cryptoknowmics.com/news/wp-content/uploads/2022/08/pricechartop-1024x554.png" alt="price chart of op" width="1024" height="554" />
<h2>Conclusion</h2>
If <a href="https://www.bls.gov/cpi/data.htm" target="_blank" rel="nofollow noopener">CPI data</a> in August show that inflation is coming down, then this market rally is expected to continue. Should inflation data come out hot, the market could see another downtrend. <a href="https://www.cryptoknowmics.com/news/can-the-upcoming-ethereum-merge-rekindle-the-crypto-market-bullrun/" target="_blank" rel="noopener">Ethereum merge</a> update will also take place in September. The success or failure of the launch will likewise determine the market's direction. Do your research before investing in any project. This article is for educational purposes and does not intend to act as investment advice.

A Glance at the The Top 5 Altcoins of the Week

If you have been thinking of investing in altcoins after a recent relief bounce, here is a list of the top 5 altcoins of the week.

Yash completed his graduation in b.tech (Computer Science ). Yash is passionate about applications of blockchain technology. Yash believes use of blockchain technology can transform our lives at a large scale. Yash daily reads articles, research reports and also  documentation of different protocols. Yash listen to podcasts to know the view of industry experts.

A Glance at the The Top 5 Altcoins of the Week

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