What is Utility token?
A token meant to be used inside a product, for fees, access or collateral.
The label distinguishes it from an ownership claim. In practice many tokens are part utility and part speculation, and the balance shifts with the market.
Ask what demand the use case creates and whether the protocol burns or locks the token. Usage alone does not necessarily support a price.
Related terms
- Governance tokenTokens
A token that grants voting rights over a protocol's parameters and treasury.
- Token standardTokens
A shared contract interface, such as ERC-20, so wallets and exchanges can support a token.
Price multiplied by circulating supply: what the market says a coin is worth in total.