When discussing Ethereum tokens, most people assume that ETH is the only one developed on the blockchain. Ethereum tokens can be confusing for someone who isn’t familiar with the Ethereum ecosystem because one would assume that a single token resides on each blockchain.
Ethereum is one of the most well-known blockchains worldwide and homes several successful projects. Interestingly, each of these projects has a native token, with prices and features independent of Ether. In fact, some of the largest crypto tokens are developed on Ethereum, and BNB serves as a great example for this statement. It was designed as an ERC-20 token on the Ethereum blockchain in 2017 but migrated to the Binance Smart Chain in 2020. When investors try to make an Ethereum price prediction they take into consideration that they can bridge Ethereum assets to the BNB Smart Chain, a feature of tremendous importance in the present crypto context when interoperability is more sought-after than ever.
Suppose you want to diversify your investment portfolio, and the Ethereum blockchain captures your attention. Here are some tokens worth considering.
Tether
Most people know that Tether is a stablecoin, but only some are aware that it’s actually a token built on the Ethereum blockchain that pegs its value to the US dollar. The asset is backed by a mix of cash and other reserves. Investors usually use Tether to increase their portfolios’ exposure to the crypto market because it functions as a hedge against volatility. Tether and the other stablecoins are currently in a bull phase, especially because they maintain their value in the long run and can be used to purchase everyday services and products. Traditional cryptocurrencies like Ether and Bitcoin can fluctuate greatly in value overnight.
BudBlockz
Here is an emerging project developed to promote the decriminalization and legalization of cannabis. The network serves as a support for the sector, and those who grow cannabis plants rely on it to complete transactions. Cannabis products have increased in popularity over the last few years, and it was only natural for the blockchain sector to monetize them.
BLUNT is the project’s native token. It can be used anonymously to pay in e-commerce stores. BLUNT users also benefit from a wide range of services, as the platform aims to provide them with an exclusive experience.
Shiba Inu
The token lost around half of its peak value during the bear market, but it’s predicted to have a profitable year now that the industry is bouncing back. As a meme coin, it’s not the most stable cryptocurrency an investor can add to their portfolio, but it’s quite lucrative for those looking to make revenue thanks to its several innovative features. As an ERC-20 token, it can be transacted from any Ethereum wallet.
UniSwap
UniSwap is a decentralized protocol and exchange that facilitates peer-to-peer transactions. It differs from other Ethereum-based projects because it runs on factory and exchange smart contracts. Factory smart contracts facilitate the addition of new tokens to the ecosystem, while exchange smart contracts are used for token exchanges. UniSwap uses a liquidity pool to back trades, meaning that users put their balances at stake to provide trade liquidity.
The Sandbox
Operating on the Ethereum blockchain, The Sandbox is a virtual gaming platform that offers a decentralized and immersive gaming experience. Using non-fungible tokens (NFTs) and cryptocurrencies, players can build unique gaming experiences and buy digital land using SAND tokens on the platform.
Users do not need to know much code to use the platform’s features and capabilities to design and create their own games or experiences. The Sandbox’s gaming philosophy focuses on user ownership and revenue, providing special chances for users to earn SAND tokens through gameplay or by selling their works in the marketplace.
In addition, the platform facilitates partnerships and cooperation with other blockchain-based projects, providing opportunities to integrate different blockchain-based assets into games developed on the platform.
Chainlink
Chainlink, a decentralized oracle network, uses LINK as its coin. Chainlink’s mission is to supply trustworthy data to blockchain smart contracts so they can perform better. Self-executing programs that execute in response to predetermined criteria are known as smart contracts. Nevertheless, they frequently lack the knowledge required to function. Here’s where Chainlink comes in: it allows smart contracts to use external data to make choices by bringing it onto the blockchain.
LINK is the cryptocurrency used on the Chainlink network. This token encourages data provision and verification from node operators—computers acting as nodes—and is used to facilitate payments between network users.
AAVE
AAVE is a decentralized finance protocol crypto holders can use to lend and borrow digital assets and real-world commodities directly, without dealing with a third party. Lenders make income from the interest they receive for loans. The project was built on the Ethereum network and relied on the blockchain to complete transactions involving ERC-20 tokens. Over the years, the crypto project expanded to other networks like Harmony, Fantom, and Avalanche to provide more comprehensive services.
AAVE distinguished itself from the other Ethereum projects because it introduced the concept of flash loans, which was innovative at the time in the crypto sector. It offered people the opportunity to obtain a loan instantly without offering upfront collateral. Ethereum needs only 13 seconds to confirm a new block in the network, so the transaction is finalized quite quickly.
Mantle
Mantle is one of the largest Layer 2 projects on the Ethereum blockchain due to its hyper-scalability and modular architecture. It made a buzz in the sector since its introduction on the market in 2023 when the developers guaranteed that the ecosystem will handle high transactions without glitches. Mantle’s main goal is to solve Ethereum’s network congestion and offer faster services. MNT is the native token of the project and is used for paying gas fees within the network and as a governance token.
Closing thoughts
Ethereum is a blockchain that has grown significantly over the years, and the number of tokens developed is increasing daily.
