One of the key indicators of the value of a crypto asset is its utility and how important it is to its holders outside its ecosystem.
Not all top crypto assets have utility making those who actually do unique and important to the crypto ecosystem.
Memecoins which are largely popular and always grabbing the headlines for turning insane profits usually have no utility and are community-driven.
This has remained the biggest argument against this category of crypto assets as many view it as a net negative to the crypto industry.
The rise of memecoins with no utility has divided opinion in the crypto space with certain factions calling them important and a welcomed alternative to the utility tokens which are usually boring. Others believe memecoins are trivializing the idea of cryptocurrency and distracting crypto enthusiasts from real projects with utility tokens.
One of the foremost voices to join this conversation is the Ex CEO of Binance Changpeng Zhao.
In an X post, he called out the rise of Memecoin as a distraction from building real products with high utility tokens.
“ I am not against memes, but meme coins are getting “a little” weird now. Let’s build real applications using blockchain.” CZ tweeted.
Memecoins are the foremost examples of crypto assets without utilities and are increasingly been seen as a nuisance in the industry.
Before we dive into the Top 5 high utility tokens with real-world uses. Let us briefly look at what Utility means in crypto.
What is a Utility token in Crypto?
Utility tokens in cryptocurrency are simply crypto assets that are designed to serve a specific use case (or use cases). In most cases, utility tokens are built with a particular platform or program in mind. Utility tokens can be used within or outside its parent ecosystem.
Top 5 high utility Tokens with Real-world Use for Nigerians
There are many high-utility tokens in the industry but we are focusing on the popular ones in Nigeria.
Tether USDT
Tether is the most popular crypto token in Nigeria given its use in everyday transactions. Tether is more popular than Bitcoin because most Nigerians can afford Bitcoin.
Tether USDT is a stablecoin pegged to the value of the dollar and is not volatile like other crypto assets. It is the default currency for Remote workers in Nigeria working with foreign firms as they receive their earnings with it.
Tether USDT is also used as the defacto cryptocurrency and as a hedge against inflation eating up the value of the Naira.
Solana (SOL)
A popular saying amongst Nigerian traders in the crypto space is “ A SOL and a Dream”. Solana is very popular amongst crypto traders in Nigeria. This is because Dexscreener the most popular app for crypto trading in Nigeria works seamlessly with Solana. This made Solana the default token used to enter most trades especially memecoins in Nigeria.
Memecoin trading which is quite popular in Nigeria contributed the most to Solana’s utility and real-world use case in Nigeria.
Tron (TRX)
The TRC 20 network is the most widely used crypto network in Nigeria for transactions. The TRX token or Tron is the native crypto asset of this network and is often used to send money via crypto to avoid transaction fees.
Nigerians who want to avoid the 1USDT transaction fee when sending USDT through the TRC 20 network can send the money in TRX free of charge.
Outside payment, TRX is also used to run smart contracts and can be used for building decentralized apps (dApps).
Ripple (XRP)
XRP is used in Nigeria by advanced crypto heads with lots of experience in the industry. XRP focuses on serving banks and financial institutions by replacing traditional cross-border payment systems like SWIFT and Western Union.
The main utility of XRP is cross-border payments at a faster and cheaper rate. Nigerians abroad who are crypto savvy use this token to remit money back to the country.
LCT token
LCT token is the native crypto asset of Local Traders a peer-to-peer crypto exchange gaining grounds in Nigeria in the absence of Binance.
The Local Traders platform uses the LCT token for a host of things and offers incentives to holders of the token ranging from discounts when paying fees with the token, VIP support, and 0% fees when trading the token.
As Local traders continue to gain ground in Nigeria’s P2P space. There would be more holders of the token and its diverse utility will be enjoyed by its holders.
What to Know
- Utility tokens aren’t necessarily pricier than crypto assets that aren’t but they often make better investment choices due to their long-term potential and tendency to be adopted by millions of users.
- Some memecoins are beginning to integrate real-world utility into their offerings away from being just ordinary assets driven by community with a serious tendency for volatility.
