Crypto tokens were created for different purposes, some are merely for transactions, some are stablecoins and some are security & utility tokens.
With over 6000 cryptocurrencies available in the market today, investments and payments rank the highest in every investor’s mind. Utility tokens are often ignored, it’s however important to note that utility tokens power most blockchains that other tokens and applications run on today.
In this post, I will list the top 10 crypto utility tokens in the market.
• Tokens are built on Ethereum’s ERC-20 protocols.
• Users have the right to discount and vote in using utility tokens.
• Utility tokens do not promote the adoption of cryptocurrencies.
SEE ALSO: Best 10 ERC20 Tokens On the Market
What are Crypto Utility Tokens?
Most people refer to blockchain-based digital assets as cryptocurrency. This isn’t entirely true as not all digital currencies are cryptos.
In reality, most cryptos are mainly categorized as either a coin or a token.
Tokens are known as digital assets that are based on top of a current blockchain. While Coins are known to be the original currency of a blockchain system used for payments of transactions. That is, they are means of payment. For example, ETH on Ethereum is seen as a coin.
Tokens are based on Ethereum’s ERC-20 precepts and come In variations such as; Utility tokens, Security tokens, Meme coins, and NFTs.
How Utility Tokens Work
Utility tokens empower usage of the blockchain crypto beyond the possibility of its coin variation. Utility tokens also empower users with certain rights such as voting and discount within a sector.
Nowadays, there are many types of utility as there are crypto coins. And experts predict the sector will only get larger with time.
Let’s take a look at two ways utility tokens works.
A lot of decentralized exchanges (DEXes) need customers to store their assets into liquidity pools. To achieve this, these exchanges produce Liquidity Provider (LP) tokens that address every investor’s portion of a given pool. The LP tokens can also be seen as vouchers.
Besides offering rewards to users, a few utility tokens additionally have administration highlights. These voting rights enable a user to decide on choices that shape the eventual protocols of the platform.
A basic administration proposition across crypto projects is whether the systems ought to present token burning. This is when tokens are purposely eliminated from the circulating supply to drive up costs and draw in new customers.
Notable Crypto Utility Tokens
You should not attempt holding a stock for 10 minutes if you can not hold it for 10 years says Warren Buffet.
As an investor cryptocurrencies with direct utility are your best option if you want to HODL for a period of 1 to 10 years. Below are the top 10 crypto utility tokens.
1. Binance Coin (BNB)
This might seem to be a little too much to handle, but there’s no cause for alarm. BNB is a token and also a crypto coin at the same time. BNB is known as the original currency of the Binance Smart Chain. Based on utility, investors who use BNB are allowed a trading fee discount of 25% when payment is made with the Binance coin.
2. Polygon (MATIC)
On the Polygon system, MATIC is known as the utility token used to regulate, payment of gas fees and staking. Due to Ethereum’s inadequacies such as low speed of transactions and high fees, Polygon is seen as a potential solution to those inadequacies.
3. Chainlink (LINK)
Chainlink is known as a service or an oracle that supplies blockchains and decentralized applications (DApps) first-hand data. Chainlink can integrate with many different blockchains, the LINK is an ERC-20 token purposefully utilized to reward users for providing accurate data, while Chainlink is used for integration with other blockchains.
4. Uniswap (UNI)
Known as a decentralized exchange on Ethereum, the Uniswap network has evolved to become the most valuable DEX in the world. Uniswap was initiated without a utility token but eventually launched UNI afterward, which allows investors to shape the future of the protocol.
5. Decentraland (MANA)
Unlike other systems on the list, Decentraland has two utility tokens namely: LAND and MANA. The system is the most popular Metaverse built on Ethereum, followed closely by The Sandbox (SAND). MANA tokens allow users to pay for the land, avatars, names, and other items. MANA is burned in exchange for LAND NFT tokens when users choose to buy land on the system.
6. Enjin (ENJ)
Enjin is a company that specializes in building blockchain gaming tools for developers, which can be utilized in the creation of virtual goods. Known as an ERC-20 token, the Enjin Coin can be used to back the value of these in-game NFTs.
7. Arweave (AR)
The Arweave is a decentralized storage system and seeks to store data till infinity. Arweave has a web permanent version known as the Permaweb. AR is the utility token as it is utilized in paying miners for the storage of all data of the network.
8. Basic Attention Token (BAT)
Basic Attention Token is a private and secure web browser that allows advertisement opt-in by users, who have then been rewarded with the Basic Attention Token (BAT) tokens for viewing ads.
The system also allows users the opportunity to tip BAT to whichever content creator they fancy most. See how you can earn BAT with the Brave Browser.
9. Golem (GNT)
Golem is another utility token launched to create an economic system that allows individuals to rent the computing power available to them.
With this, those interested could use said computing power for various tasks, all attributed to a decentralized network.
Filecoin is an open-source, public cryptocurrency and digital payment system intended to be a blockchain-based cooperative digital storage and data retrieval method. It is made by Protocol Labs and builds on top of the InterPlanetary File System, allowing users to rent unused hard drive space.
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