In crypto, the word Utility means the real use-case or purpose of a token/coin inside its ecosystem.
👉 In simple words:
If a token can do something useful beyond just being traded, that usefulness is called utility.
🔑 Types of Utility in Crypto:
1. Payment Utility – A token used as a medium of exchange.
Example: Bitcoin (BTC) can be used to pay for goods/services.
2. Governance Utility – Token holders can vote on project decisions.
Example: UNI (Uniswap) holders vote on protocol upgrades.
3. Access Utility – Tokens act like a ticket to access services or platforms.
Example: Some gaming tokens unlock in-game features or NFTs.
4. Staking & Rewards Utility – You can stake tokens to earn rewards or secure a network.
Example: ETH staking secures Ethereum blockchain.
5. Fee Reduction Utility – Tokens used to reduce trading fees on exchanges.
Example: BNB on Binance exchange reduces fees if used for payment.
6. Collateral Utility – Tokens used as collateral for loans in DeFi.
Example: DAI, USDC, ETH on lending platforms like Aave.
---
✅ Why it’s important?
A token with strong utility usually has long-term value, while tokens without utility often rely only on hype (like many meme coins)
