šŖ Token Utility: What REALLY Gives a Coin Its Value? šš”
Not all tokens are created equal.
Hype fades ā but utility drives real, sustainable value.
Hereās how to spot tokens with strong fundamentals š
š¹ 1. What Is Token Utility?
Itās the actual function of the token ā beyond speculation.
The more useful a token is within its ecosystem, the stronger its long-term potential.
š¹ 2. Types of Token Utility:
ā
Governance ā Vote on proposals (e.g.,
$UNI , $AAVE)
ā
Gas Fees ā Power the network (e.g., $ETH, $BNB, $MATIC )
ā
Staking ā Earn rewards + secure the network (e.g., $SOL, $ADA)
ā
Access/Discounts ā Unlock features, services, or fee reductions (e.g., $BUSD , $CRO)
ā
Collateral ā Used in lending/borrowing (e.g., $DAI, $ETH in DeFi)
š¹ 3. What to Look For in a High-Utility Token:
š Real adoption
š§± Strong ecosystem (DeFi, NFTs, etc.)
š Clear tokenomics (low inflation, capped supply)
š Dev activity & roadmap milestones
š¹ 4. Red Flags to Avoid:
š© No use case beyond hype
š© Centralized control
š© Token burns used as the only growth mechanism
š© Overpromised roadmaps with little delivery
š” Utility = Stickiness.
When users need the token to interact with an ecosystem, demand follows naturally.
šÆ Pro Tip: Ask yourself, āIf the token went to $0, would the product still work?ā If not, be cautious.
š Which token do you think has the strongest utility today?
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