Most investors know that tokens that provide utility to the ecosystem that they help function generally make much better investments, as unlike coins that do not provide utility like meme coins, utility tokens will benefit from a consistent buying pressure brought about by the required use of the token. This use could be for transaction fees, to reward users or another particular service, but these projects all have a price floor set by the token demand.
Which utility cryptocurrencies are the best investments?
While utility tokens are often better investments than other types of tokens, not all utility tokens are equal. In fact, there is a huge amount of variance in the quality of utility tokens, so it’s important to do your research ahead of picking the best utility tokens to invest in.
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It’s crucial to understand how utility tokens work and what motivates ecosystem users to continue to buy the utility tokens over time. With so many utility coins out there on the market, here are the best utility tokens that most crypto experts believe have the potential to post big gains for holders:
- AltSignals (ASI)
- Metacade (MCADE)
- Basic Attention Token (BAT)
- Ripple (XRP)
- Binance Coin (BNB)
- Ethereum (ETH)
- Decentraland (MANA)
- Enjin Coin (ENJ)
- Chainlink (LINK)
- 1Inch (1INCH)
AltSignals – Best utility token for outstanding trading signals
What is AltSignals?
AltSignals is a project that has made a gigantic splash across experienced investment circles. The project is currently best known for its market-leading AltAlgo™technology, which constantly scans the market to provide AltSignals users with trading signals of incredible quality, and the results have been so strong — making up part of the 1,500 signals sent by AltSignals with a mind-blowing 64% success rate —that the project boasts an unprecedented 4.9/5 rating on Trustpilot.
AltSignals is causing a stir as a result of their latest announcement, which revealed a comprehensive and ambitious whitepaper detailing the build of ActualizeAI, a product that, once completed, will provide AltSignals users with cutting-edge trading signals powered by the latest machine learning techniques, such as reinforcement learning and sentiment analysis.
Holders of the new ASI token will gain early access to the ActualizeAI product and also have the ability to join the exclusive AI Members Club. AI Members Club is set to provide broader earning opportunities for ASI holders in exchange for their involvement, and holders have the ability to directly impact the product with their feedback.
What are the reasons to invest in AltSignals?
AltSignals is the rarest of investment opportunities, allowing investors to acquire their ASI tokens at an absolutely incredible price during the presale versus the value that many expect to see once the token is launched on the wider market.
With the perfect mix of a compelling proposition and a massive user base, AltSignals seems like most experts’ choice for the top of the list of best utility tokens available today.
>>> You can participate in the AltSignals presale here <<<
Metacade – Best of the gaming utility tokens
What is Metacade?
Metacade is an innovative new project which has set out to change the way that gamers enjoy their favorite hobby, and central to the Metacade plan is the construction of the biggest play-to-earn (P2E) arcade on the planet.
The recently released whitepaper showed an extensive rewards system for the ecosystem, which allows gamers of all stripes to earn rewards for playing their favorite titles, while users can even earn rewards for non-gaming activities which benefit the ecosystem — such as writing game reviews, sharing alpha or engaging with the community.
The project also includes a compelling feature called Metagrants, which calls for game development teams of all levels to present their gaming ideas to the community. MCADE holders are then able to vote for where they believe that funding should be allocated, and this gives the community a direct say in the future direction of the project.
Why you might consider buying Metacade
MCADE is used as the native currency of the Metacade ecosystem, and this high level of utility means that it is considered among the strongest early-stage crypto assets available. As with many of the best utility tokens, MCADE has a limited supply and is likely to see a strong level of buying as the platform begins to go live later in the year. It’s in the final stage of the presale before soon listing on exchanges.
>>> You can participate in the Metacade final stage presale here <<<
Ripple – Best of the banking utility tokens
What is Ripple?
Ripple’s XRP is perhaps one of the earliest utility tokens, having been around for nearly a decade. The Ripple project is a global payment network that allows for fast and secure transactions using blockchain technology, with high liquidity and tiny transaction fees. Native token XRP powers the Ripple network, and the project offers a unique and innovative way to transfer money across borders.
The utility that XRP provides makes many believe that it is among the best utility tokens available, as traditional banking systems can take days or even weeks to process cross-border payments, but Ripple can complete transactions in seconds. This is thanks to the use of blockchain and the XRP utility token, which allows for instant verification and transfer of funds.
Ripple and XRP offer a fast, secure, and affordable way to transfer money across borders. As more businesses and individuals turn to cryptocurrency for their financial needs, it’s clear that Ripple and XRP will continue to play an important role in the global payments landscape, and the project is certainly much more advanced than many other utility tokens.
Why should you buy Ripple?
Ripple’s epic lawsuit with the Securities and Exchange Commission is rumored to finally be close to completion, and we could see a huge bump in the price of XRP as a result, presuming that Ripple wins. The risk for holders is that even the low transaction fees may not be enough for financial institutions to pick XRP over other crypto assets — but the size of winning even a small chunk of that market could be massive for XRP holders.
Binance Coin – Best of the exchange utility tokens
What is BNB?
The Binance Coin BNB is the exchange token of the Binance exchange and also serves as the layer-1 token for the Binance Smart Chain, Binance’s very own layer-1. While the Binance Smart Chain has received criticism for its highly centralized nature, the project has proved very successful and has even secured a fair chunk of the overall layer-1 transaction volume from Ethereum and others.
Projects running on the Binance Smart Chain can use the launchpad to raise funds, and the fees and speed of the BSC are considered to be very competitive versus other blockchain networks. This has led to a huge volume of projects running on the chain, from those purporting to be digital currencies to security tokens and a decentralized storage network, many different utility tokens have been created on the Binance network.
Why should you buy BNB?
Binance uses the BNB token to pay for gas fees, and while the gas fees on the BSC are very low, it makes up for it in the high volumes of transactions that this attracts. The monetary value of the BNB token has proved robust, with the crypto winter not denting the performance as significantly as for other utility tokens.
Token holders can stake their tokens and use them to pay trading fees on Binance and participate in an Initial Coin Offering for the latest project through the launchpad. The token offers utility in many ways, and this further supports the prospects for BNB as an investment, despite a high market cap.
Ethereum – The creator of smart contracts
What is Ethereum?
Ethereum is the dominant layer-1 protocol, and its native token, ETH, is perhaps the best-known of the crypto utility tokens. The Ethereum network has proved incredibly stable and is the home of the majority of digital assets that are implemented through the network’s smart contracts.
The network has thousands of different projects running on it, including many security tokens, meme coins and other digital assets. As a result of this, Ethereum itself has likely spawned many hundreds of other crypto utility tokens.
Ethereum has a thriving community and some of the most talented crypto developers out there. It certainly has a bright future as the de facto leader of crypto space.
Why should you buy Ethereum?
Ethereum may have a huge market cap and be available on all crypto exchanges worth their salt, but it still could offer some significant upside. If there is an increase in the amount of mainstream adoption of crypto, and more corporate use cases spiking Ethereum, it could drive the price of ETH up significantly — making ETH a regular feature in the market’s favorite crypto utility tokens.
Basic Attention Token – Best of the utility tokens targeting content
What is Basic Attention Token?
Basic Attention Token is a project that looks to reward content creators for their work through the use of the utility token BAT. BAT is one of the most popular utility tokens among purists as a result of the huge problem that it helps to solve.
Content creators are well-known for being underfunded, and by incentivizing users to earn opt-in to advertising to earn tokens and then to donate them to content creators they enjoy, BAT helps shape a more organic and robust internet ecosystem.
Like many utility coins, BAT has a fixed supply and is featured on many crypto exchanges, in part due to the compelling use case it is trying to solve. The project even comes with a dedicated browser — the Brave browser — which enables users to engage with the Basic Attention Token ecosystem.
Why should you buy Basic Attention Token?
BAT consistently appears on the list of most popular utility tokens, which is a reflection of the support it has throughout the industry. Holders access the ability to reward content creators for good work, and so we could see big momentum build if more users buy into the approach over time.
It will be difficult for the Brave browser to take market share from the tech giants, but if it can pull it off, the sky will be the limit.
Decentraland – Best of the metaverse utility tokens
What is Decentraland?
Decentraland is a virtual world built on blockchain technology that allows users to buy, sell, and create virtual real estate, as well as interact with other users through their avatars. The project, as the name suggests, is a completely decentralized, open-source platform that enables users to create their own virtual experiences, games, and applications using tools provided by the platform.
One of the main attractions of Decentraland is its use of blockchain technology to enable true ownership of virtual land, allowing users to buy, sell, and trade virtual real estate just like physical real estate. This is enabled through different utility tokens, and the utility tokens used across the platform are critical to the success of the project.
The ownership model creates a sense of scarcity and exclusivity as users compete to acquire the most desirable parcels of land within the virtual world, and the project also allows for users to create and monetize their own virtual experiences within the platform. This allows for a wide range of user-generated content, from virtual art galleries and music venues to interactive games and experiences. This in itself provides a great deal of utility and more than even most utility tokens.
Why should you buy Decentraland?
Decentraland is an innovative platform, and as the crypto space evolves, it could see more momentum building. If the project is able to grow its user base, the utility tokens it relies on are likely to see the price rise as users acquire the different tokens to partake in the game.
Enjin Coin – The best for NFT utility tokens
What is Enjin Coin?
Enjin is a project that allows developers to create, manage, and integrate digital assets into games and applications, focusing on enabling the creation of assets that are interoperable across multiple platforms — allowing developers to easily integrate Web3 technology into their projects without the need for extensive coding knowledge.
Enjin’s platform is built on the Ethereum blockchain and boasts the ability to create non fungible tokens (NFTs) that are unique and scarce, creating a sense of exclusivity for users. NFTs can represent anything from in-game items to virtual real estate and can be traded and sold just like physical assets, meaning that Enjin offers a huge amount of flexibility for its users to integrate into their products.
The ENJ utility token provides liquidity to the entire ecosystem, making it a utility token that is at the very heart of the project’s experience.
Why should you buy Enjin Coin?
Enjin also includes a marketplace where users can buy, sell, and trade digital assets created on the platform, which creates a secondary market for developers to monetize their creations while also providing users with the opportunity to acquire unique and valuable assets.
If the project can continue to facilitate the creation and management of digital assets that are secure, interoperable, and valuable as the popularity of blockchain technology continues to grow, Enjin has the potential to become a big player in the gaming and application development industry — which naturally would drive up the price of the ENJ utility token.
Chainlink – Best utility token for the oracle problem
What is Chainlink?
Chainlink is a decentralized oracle network that provides secure and reliable inputs and outputs for smart contracts on blockchain platforms by using the utility token LINK. While smart contracts are self-executing contracts with the terms of the agreement between parties directly written into lines of code, they can sometimes require external data inputs, known as oracles, to trigger the contract’s execution or provide data. Chainlink’s decentralized oracle network provides a secure and decentralized solution to this problem.
As one of the most established and respected projects in the blockchain space, Chainlink and its LINK token is worth considering for both developers and investors interested in the potential of decentralized oracle networks. The LINK token is a fantastic example of how far utility tokens can go in serving a key role in a project.
Why should you buy Chainlink?
The Chainlink network uses the LINK token as its utility token, and these utility tokens are used to pay node operators for providing data to the network and performing other tasks. As the Chainlink network continues to grow and gain adoption, the demand for LINK tokens is likely to increase.
This means that, although the market cap of the project is very high compared to many utility tokens, the many use cases of the LINK utility token could still produce big returns.
1Inch – The best decentralized exchange utility token
What is 1Inch?
1Inch is a decentralized exchange aggregator that helps users find the best available prices across multiple decentralized exchanges. 1Inch’s unique algorithm splits orders across multiple decentralized exchanges to find the best prices for users and also provides liquidity for those decentralized exchanges.
The 1INCH utility token is used across the 1Inch platform for governance, allowing token holders to vote on key decisions related to the platform’s development and direction. The main utility of the token comes through the fact that 1INCH holders access rewards by providing liquidity to the 1Inch liquidity pool.
1Inch and its 1INCH utility token are worth considering for users looking for a more efficient way to trade their crypto, as well as investors interested in the potential of DeFi projects. This makes the 1INCH utility token a popular option for those utility token investors looking for high potential.
Why you should buy 1Inch?
1Inch has quickly gained popularity among users looking for a more efficient and cost-effective way to trade crypto, and the 1INCH token’s utility within the platform and potential for governance rewards make it an attractive option for investors interested in the decentralized finance (DeFi) space.
Utility Tokens vs Security Tokens vs Governance Tokens vs Payment Tokens
Utility Tokens
Crypto utility tokens play a key role in the functioning of the project to which they belong. Many crypto projects use utility tokens as a way of incentivizing certain behaviors, such as sharing decentralized storage space or in exchange for viewing digital advertising. Utility tokens generally serve a specific purpose in a project’s ecosystem, and examples of utility tokens could include tokens like LINK and THETA.
Security Tokens
A security token represents some form of ownership rights and is created as part of a process called tokenization that allows for partial ownership of a larger asset, like a house. A security token has to be approved by the Securities and Exchange Commission in the US, and this means that they have to adhere to certain other regulations. When owning a security token, it usually reflects ownership of something within the real world, such as ownership of a specific bond which could have a real-world representation, too, such as with a bond certificate.
Security tokens are an area of crypto that can expect to see a huge amount of growth because every asset tokenized over the coming years will create a new security token. This means that security tokens will soon be much more prevalent across much of the TradFi space.
Governance Tokens
A governance token is a crypto coin that allows holders some form of voting privilege on the project to which the token belongs. The most prominent example of governance tokens are those in projects that are run via a decentralized autonomous organization (DAO) which passes voting rights to governance token holders in order to determine the future direction of the crypto project.
With each governance token typically worth a single vote, consolidation of power is a concern, and as this form of governance is still a relatively new phenomenon, the crypto ecosystem as a whole is pioneering new ground with these experiments.
Payment Tokens
A payment token is a digital asset whose primary purpose is the role of fiat currencies. Projects such as Dogecoin and Bitcoin provide an alternative to dollars, euros and pounds for those looking to make quick and easy payments.
Are utility tokens a good investment?
Utility tokens are generally seen as a fantastic investment choice because there will always be a level of non-speculative buying pressure from those looking to utilize the tokens in the use of the project to which they belong. Utility tokens represent a fantastic way to mitigate risk on crypto investments, as while meme coins have no price floor, a utility token will always be supported by the use of the project.
There are many other factors that help determine whether a specific utility token is a good investment, though. This means that investors wanting to buy utility tokens should still review the quality of a project’s smart contracts, whether there is a limited supply of the tokens, recent pricing data and much more to build a picture of the quality of an investment.
Conclusion – What could be the best utility crypto to buy right now?
Choosing the absolute best utility token is very tough, but as the best crypto utility tokens need both huge potential and highly discounted prices, AltSignals is an incredible example of a project with a utility token that fulfills an important function.
This could mean that, of all crypto projects reviewed, ASI might be the top utility token in which to invest during 2023.
Related Crypto FAQs
What makes a token a utility token?
Most utility tokens will play a key role in the way that the project functions, but this can be done in different ways. Utility tokens like LINK or FIL incentivize certain behaviors, while utility tokens like ETH are used to pay transaction fees. Exchange utility tokens will cover things like trading fees.
All utility tokens must impact the way that users interact with the project, so if you are looking to identify utility tokens versus other types, this is the main indicator. Look out for qualities like the ability to pay transaction fees with the token to be sure.
Which crypto has real utility?
Many utility tokens provide real utility in the Web3 space. With different utility tokens serving different purposes, you can find utility tokens that make a real difference in practically every sector. ASI is a great example of access-based utility, as it offers utility through the ability to access the product and to what extent is determined by holding the token.
Which altcoins have the most utility?
The utility tokens with the highest utility across the altcoins ecosystem are a difficult thing to be completely sure about. Utility tokens like ASI and MCADE are certainly up there, as is a utility token like LINK on which the ecosystem is completely reliant. As it is difficult to predict the projects whose utility tokens will go on to see huge demand, it can be sensible to invest accordingly, in a range of different utility tokens.
You can participate in the AltSignals presale here.
You can participate in the Metacade final stage presale here.
Source: https://invezz.com/news/2023/03/21/the-best-utility-tokens-to-invest-in-during-2023/