When it comes to cryptocurrencies, one thing you should always try to be aware of is the use cases of various tokens. While critics accuse cryptos of being hype with no substance, many different cryptocurrencies have proven this wrong.
It is especially important to know this as an investor. The long-term market value of many tokens depends on their use cases, so this can help you choose the right crypto. As crypto writer Otar Topuria explains, the top crypto to buy is likely one with tangible use cases, so it is worth keeping this in mind. Here are some of the real-world use cases for the most popular coins:
The second most popular cryptocurrency in the world, Ethereum, has defined itself by having a myriad of use cases which benefit both the ecosystem and investors. For starters, Ethereum is a very good staking token, which means that you can lock your coins away and earn interest on them over time. Ethereum is also a gateway to the decentralized finance (DeFi) space. Using Ethereum, you can access decentralized insurance, lotteries, token swapping, and so on. Ethereum can also be used to mint assets like non-fungible tokens (NFTs). When it comes to use cases, few have as much diversity as Ethereum and thus, should be one of the tokens at the top of your list.
The native token of Ripple Labs, XRP, is primarily used as a facilitator of cross-border transactions. Anyone who has tried to move money from one country to the other will attest to the fact that it can be not only a slow process but also an expensive one in terms of fees. XRP addresses this major pain point by being one of the fastest and cheapest cryptocurrencies to send. In fact, there have been instances of millions of dollars worth of XRP tokens being sent with only pennies being charged in fees and within a very short period. XRP has been the go-to for this purpose for years, and from all indications, it is only going to continue to hold down for it.
If you’re a gaming fan, you almost certainly have heard of the Sandbox, which is one of the most prominent gaming universes around. The Sandbox facilitates such prominent gaming projects as Minecraft and Terraria. At the center of this project is a native cryptocurrency called SAND.
SAND has a myriad of use cases specifically within this gaming project. Using this token, you can buy virtual land, buy NFTs, and generally facilitate transactions within the ecosystem. At this point, it would be very difficult to even function within the Sandbox without having some of its virtual currency, and it stands as a shiny example of gaming cryptos that have made a name for themselves.
The crypto sector is notoriously volatile, and this is where UDT can shine. It is the most famous stablecoin in the industry and is pegged one-to-one to the United States dollar. This means that, unlike traditional cryptos like Bitcoin, it does not see its value fluctuate very much. This gives it the Avenue to develop many use cases as it is used as a way to enjoy the benefits of crypto while avoiding volatility. You can use USDT for trading other tokens, for paying for goods and services, and so on. It has inspired many other stablecoins in the markets, but to this day, it remains the biggest.
Given that cryptocurrency is so community-focused, it comes as no surprise that Decentralized Autonomous Organizations (DAOs) have taken root. These DAOs are blockchain projects which see the community voting on various decisions and are essentially crowd-sourced endeavors. MKR is the native token of the MAKER ecosystem and is the means through which the community works. To vote on various proposals and overall engage with the ecosystem, you need to have some MKR tokens on hand. But once you do, the experience is much richer and the ecosystem is better able to evolve.
Anyone who says that crypto assets do not have tangible use cases has clearly not heard of any of these. All these cryptocurrencies have proven over the years that there is so much that can be done with them, and the list is only getting longer. From facilitating community voting to cross-border transfers to the NFT and DeFi spaces, so many blockchain applications are only possible because of these tokens. As time goes on, more use cases for these tokens will emerge, and more cryptos will enter the markets with their own unique use cases. Either way, the users and various crypto projects will be the ones to benefit.
