What makes tokens valuable?
ERC20 token prices are all based off of supply and demand. A token price will rise when more people demand the token, most likely because of their trust in the project. Trust is extremely important in the token economy, as investors rely on the reputation of the developers to create the applications and use cases for their tokens.
Currently, the five most popular tokens by market cap are:
You must be wondering how their market caps are so high! Let’s briefly look into them.
Tether is a token that has the same value as the US Dollar. This is valuable because it allows you to hold or trade with a token that doesn’t fluctuate in value.
BNB, LEO, and HT are created by exchanges and, when you have these tokens, you incur less fees on their respective exchanges, as well as access to other ecosystem perks.
LINK is far more interesting though. ChainLink is a network that connects things built on Ethereum to the real world. LINK is the token that facilitates the passing of accurate real-world information (like who won the superbowl) from point A to point B.
There are a ton more use-cases for these tokens. They are an integral part of the Ethereum network, the speculative marketplaces, advanced financial derivatives, and things we can’t even imagine yet. The more unique, useful, fun, and entertaining things that can be built on top of Ethereum, the better. Tokens are a standard, easy way to bring all different ideas to life.
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