Best Utility Tokens to Invest in 2024

Many believe that investing in any reputable cryptocurrency presents a solid investment opportunity. Even though such an approach often turns out to be profitable, you should understand that a lot of such coins and projects would quickly diminish if they don’t serve a particular purpose. For example, if a coin does not have a clear development path and a viable purpose, it will fail quickly.

That said, one of the items on your checklist should be the token’s utility. Stay tuned as we discuss the best utility tokens to invest in 2024. You will learn more about utility, spotting the best investment opportunities, and so much more.

Reviewing the Best Utility Tokens for 2024

When evaluating cryptocurrency investments, the utility of the cryptocurrency is of utmost importance, yet numerous other factors also need to be considered.

Assessing the utility token project’s upside potential, current market prices, and whether the cryptocurrency offers a distinctive value proposition are all key steps. Delve into our insights on the best utility crypto projects poised for investment success today.

1. Pepe Unchained – Overall Best Ethereum L2 Utility Meme Token

• Total supply: 8 billion
• Deployment network: Ethereum (L2)
• Token type: ERC-20

Pepe Unchained ($PEPU) is a new doge-themed meme coin that is built on the Ethereum layer-two (L2) blockchain. Currently, $PEPU, the native token, is priced at just $0.0083591 on presale. 

Why Do We Like Pepe Unchained?

Since Pepe Unchained is built on the robust L2 network of Ethereum, it offers several benefits and use cases. L2 tokens offload transactions from the main chain, leading to more efficiency in transaction speeds while reducing gas fees. 

Furthermore, the reduced operational costs allow Pepe Unchained to offer high staking rewards to token holders. At press time, $PEPU can be staked to generate an APY (Annual percentage yield) of 627%. 

Thus, token holders can generate regular passive income, which will help incentivize long-term token adoption. From a total supply of 8 billion tokens, 30% will be distributed through staking rewards, and 20% are being allocated through the presale. 

The Pepe Unchained presale has raised over $3 million since launch. 

What Are The Risks?

Pepe-themed meme tokens could offer highly uncertain returns to investors. Once $PEPU lists on exchanges, there is no guarantee of securing a return on your investment. However, the L2 chain benefits and high staking rewards may help Pepe Unchained become a top investment opportunity. 

2. Crypto All-Stars (STARS) – Offers a Unique ‘MemeVault’ with 3x Higher Staking APY

• Total supply: 42,069,696,969
• Deployment network: Ethereum
• Token type: ERC-20

Crypto All-Stars ($STARS) is a hot new meme coin project that aims to unite the divided meme coin market under one platform. Currently, $STARS, the project’s native token, is priced at $0.00138 in its presale phase.

Why Do We Like Crypto All-Stars?

Crypto All-Stars offers a unique “MemeVault” idea, a platform for staking popular meme coins that let users earn $STARS tokens by staking them. This method builds a strong ecosystem where investors can get the best returns on a number of meme coin investments.

Also, $STARS holders can get higher rewards because the project offers 3X staking benefits compared to other meme coins. Out of the total supply of nearly 42 billion tokens, 25% are set aside for staking rewards.

Early buyers still have time to grab 20% of the project’s supply in the ongoing presale at a relatively low price. With over $330,000 raised in just a few days, early investor traction is quite evident.

What Are The Risks?

There are risks with all crypto investments, but they are especially high in the meme coin space. Once $STARS tokens are listed on exchanges, they could see volatility similar to other meme coins. Moreover, the platform’s success relies on meme coins staying popular over time.

3. Base Dawgz – Multi-Chain Meme Coin Offers Social Airdrop Rewards

• Total Supply: 8.453 billion
• Deployment Network: Base
• Token Type: ERC-20

The next utility token on our list is Base Dawgz ($DAWGZ), a multi-chain token built on the Base blockchain. Base Dawgz offers multi-chain compatibility, staking rewards, and social airdrop rewards to token holders. 

Why Do We Like Base Dawgz?

Built on the Base blockchain, Base Dawgz looks to replicate the success of other meme coins such as Toshi and Brett. Base Dawgz takes the advantage by offering multi-chain compatibility, allowing $DAWGZ token holders to bridge from Base to the Ethereum, Solana, Avalanche, and Binance chains. 

This utility coin will also allocate 20% of its total 8.453 billion token supply through staking rewards. Finally, Base Dawgz is also hosting a ‘Be Social for Airdrop’ campaign, through which users that interact with the platform’s social media and earn $DAWGZ tokens. 

So far, the Base Dawgz presale has raised more than $2.3 million in a couple of months. 

What Are The Risks?

Most doge-themed meme tokens struggle to offer long-term returns. To cope with this, Base Dawgz offers multiple-earning opportunities to token holders, in the form of social airdrops and staking yield. 

4. Shiba Shootout – Best Utility Crypto With Generous Staking APY

• Total Supply: 2.2 billion
• Deployment Network: Ethereum
• Token Type: ERC-20

Next on our best utility tokens list is a newly launched meme-based coin Shiba Shootout ($SHIBASHOOT), which distinguishes itself by incorporating utility into the token.

Why Do We Like Shiba Shootout?

Shiba Shootout stands out among the realm of dog-based coins due to its unique combination of meme potential and planned utility features outlined in its roadmap. While embracing its meme origins, the coin also sets itself apart by incorporating practical utility functions, promising a dynamic and multifaceted experience for investors and enthusiasts alike.

In addition to its primary features, Shiba Shootout introduces two engaging additions to improve community participation and interaction. Firstly, the Posse Rewards referral program incentivizes users to refer friends by offering token rewards to both the referrer and the referred individuals.

Secondly, the Campfire Story platform provides a space for community members to share their experiences and insights related to cryptocurrencies and meme coins, fostering a sense of camaraderie and knowledge exchange within the community.

During the presale phase, early birds can secure an APY of over 20,000%. To purchase the token, you need an Ethereum wallet and either ETH, USDT, or BNB coins.

What Are The Risks?

The APY offered during the presale phase is subject to change over time. The APY will gradually decrease as the number of tokens purchased and staked increases. Additionally, it’s important to note that tokens acquired with BNB will not qualify for staking rewards, impacting the potential returns for investors using this method.

5. Mega Dice – Solana Crypto Casino Launching Its Own Utility Token

• Total supply: 420 million
• Deployment network: Solana
• Token type: SPL

Mega Dice is a pioneering Solana GamiFi platform that combines online casinos with cryptocurrency, featuring its native token, $DICE, for player rewards and benefits.

Why Do We Like Mega Dice?

Backed by a strong community, with over 50,000 players and $50M+ monthly wagering, Mega Dice Casino’s token presale garnered immediate interest and purchases. With its great benefits and community support, there’s optimism for its potential to be one of the best utility tokens.

Players earn $DICE by playing games, amplifying their overall involvement. Beyond the casino, $DICE is useful across partner platforms, which can be exchanged for other cryptos or staked for added perks.

In addition, strategic buybacks and regular token burns to bolster $DICE’s stability and growth by reducing its total supply and enhancing scarcity and value.

As of the moment of writing, the token is in its presale phase, available at a price of $0.069, with an impressive fundraising amount exceeding $9 million.

What Are The Risks?

The main risks associated with Mega Dice include its absence from centralized exchanges (CEX) as well as the inability to withdraw tokens until the presale concludes. In addition, there is also a requirement to achieve over $5,000 in wager volume within 21 days to qualify for the token airdrop.

6. DTX Token (DTX) – Crypto Exchange With $1M Airdrop

• Total Supply: 475,000,000
• Hard Cap: N/A
• Network: Ethereum
• Token Type: ERC-20

DTX Token ($DTX) is the native token of the DTX exchange that unlocks premium access to features like analytics and priority customer support. It will also be utilized by users to pay fees on the DTX exchange and to vote in the DAO.

Why Do We Like DTX Token?

The DTX Token is now sold in a presale for $0.04 during the second presale stage. Once this stage is cleared, the token price will go up by 50% to $0.06. This is designed to give the early investors the best token price.

Those who buy at least $100 worth of tokens are automatically enrolled in the $1 million airdrop where 10 lucky winners will each get $100,000. Depending on the amount of $DTX you buy, you earn a token bonus. For example, purchases of between $250 and $1,999 worth of $DTX grants the investor a 5% token bonus.

DTX is a popular exchange that uses tokenized assets, allowing users to trade over 120,000 assets including stocks, bonds and crypto with up to 1,000x leverage.

Follow DTX on X and join the DTX Telegram group to get the latest information and to increase your chances of winning a portion of the $1 million airdrop.

What Are The Risks?

The risks are similar to investing in any other presale, including volatility risk after the presale ends and failure by the team to provide the promised benefits. However, DTX is a crypto exchange and not a meme coin, thus the risk in investing is slightly lower.

7. Doge2014 ($DOGE2014) – Trending New Meme Token with High Staking APY

• Total supply: 10 billion
• Deployment network: Ethereum
• Token type: ERC-20

Doge2014 ($DOGE2014) is a popular new Ethereum-based meme token created to commemorate Dogecoin’s 10th anniversary. This project aims to replicate Dogecoin’s initial success while offering unique features to attract new investors.

Why do we like DOGE2014? 

The ongoing presale has already generated some investor interest, raising nearly $10K in just a few days. Early buyers can get $DOGE2014 for just $0.00027– similar to Dogecoin’s 2014 launch price.

The platform offers high staking rewards to early investors. Buyers can get an APY of over 45,000% at the time of writing. Please note that this rate will decrease as more tokens are staked.

At press time, more than 30 million tokens have been locked in the staking mechanism, showing early investor confidence.

What Are The Risks? 

DOGE2014 can see high volatility after its expected exchange listings, especially as investors try to exit after booking their profits. Moreover, as more tokens are staked, the APY will also fall.

Interested buyers can join the Doge2014 Telegram channel and follow it on X (Twitter) for the latest presale updates.

8. SpacePay (SPY) – Earn Passive Income and Airdrops

• Total Supply: 34 billion
• Deployment Network: Ethereum
• Token Type: ERC-20

One of the best utility tokens is SpacePay ($SPY) because it will offer passive income opportunities to token holders and airdrop rewards to active SpacePay users.

Why Do We Like SpacePay?

SpacePay is a crypto infrastructure product that bridges the gap between traditional and crypto payments. The way it works is the user pays with crypto from over 300 crypto wallets and the merchant gets the payment converted to fiat.

The cost is flat at 0.5% for the merchant and there are no additional or hidden fees. This fee is what makes the SpacePay revenue, which will be shared with $SPY token holders in the future. Active SpacePay users will get monthly loyalty $SPY airdrops. Holders will also be able to vote in the future SpacePay developments.

This London-based startup has already raised $750,000 from private investors, showing strong confidence in the sector. Now, everyone can invest in this project while the $SPY token is in a presale. This gives early birds the lowest price because when $SPY is listed on exchanges, the price will likely be higher.

What Are The Risks?

Similar to any crypto project that is in its infancy there are risks that it could fail or become insolvent. In this case, the project’s tokens could become worthless. However, SpacePay has already raised funds from private investors and the minimum viable product is ready and in beta testing. This means that SpacePay isn’t starting from scratch, thus the risk of failing is low.

9. Race to a Billion (BDJ) – Use the Token to Cast Formula 1 Predictions and Earn Rewards

• Total Supply: 2.5 billion
• Deployment Network: Ethereum
• Token Type: ERC-20

Race to a Billion is a popular crypto project where its token $BDJ has a utility within the ecosystem. Those who wish to use the platform to earn rewards will need to acquire $BDJ tokens first.

Why Do We Like Race to a Billion?

Race to a Billion offers a fun and engaging way for fans of Formula 1 races to cast their racing predictions and earn rewards at the same time. Those who are most accurate could win end-of-season jackpots.

To participate in the prediction process, you need $BDJ tokens. The tokens are now available at a discount during the presale, giving early investors a chance to load up before the token launches and race prediction starts.

During the presale, early investors can double their holdings by staking the token. There’s over 6,000% staking APY currently. However, the APY will drop as more tokens are staked, making early staking a prudent option for those interested in the project.

What Are The Risks?

Similar to all projects that are in a presale phase, Race to a Billion faces the same risks. Although the roadmap is straightforward and the prediction platform isn’t complicated to build from a technical standpoint, there are still risks that the project will fail to take off.

10.  StarChain AI (STRC) – Redefining Scientific Research using Blockchain and AI

• Total Supply: 500 million
• Deployment Network: Ethereum
• Token Type: ERC-20

Another high-utility crypto project to watch out for this year is StarChain AI ($STRC). It aims to change how scientific research is done— starting with astronomy. It uses blockchain and AI to create a decentralized database for scientific information.

You can buy $STRC tokens early using USDT, ETH, or BNB. The price starts low at $0.50 per token and will go up in the upcoming presale round.

Why Do We Like StarChain AI?

The main feature of StarChain is its DataStore, which puts scientific data from many sources in one easy-to-search place. This helps solve the problem of ‘fragmented scientific data.’ It’s worth noting that they’ve already collected over 500 terabytes of astronomy data.

StarChain also uses AI to validate and interpret the data people upload. This makes research faster and easier.

To encourage data sharing, StarChain will give out $STRC tokens as a reward. This helps create a community of researchers working together.

The project is led by experts like Dr. Lucas Meijer, who has a PhD in Astrophysics and used to work for the European Space Agency. With a fully KYC’d team and Certik audit, they have big plans to expand into other areas of science.

What Are The Risks?

StarChain AI has the same risks as any other project in its presale stages. Even though the roadmap is clear, there is still a chance that the project will fail.

11. Ethereum (ETH) – Leading Smart Contract Ecosystem Supporting Thousands of ERC-20 Tokens

• All-time high: $4,891.70
• All-time low: $0.4209
• Total supply: 120,072,117 ETH

As the world’s second-largest cryptocurrency by market capitalization and one of the best Bitcoin alternatives, it will be no surprise to see Ethereum as one of the best utility tokens. 

Why Do We Like Ethereum?

Ethereum introduced the groundbreaking concept of a blockchain smart contract platform. Smart contracts are self-executing computer programs that automate actions required to fulfill agreements between multiple parties online. They aim to eliminate the need for trusted intermediaries, cutting costs and enhancing transaction reliability.

For ERC-20 projects to conduct transactions on the Ethereum blockchain, they must cover GAS fees, payable exclusively in ETH. This factor positions Ethereum as a top choice among utility coins, given its integral role in facilitating transactions and powering decentralized applications (dApps) within the Ethereum ecosystem.

ETH is also essential for minting and transferring Ethereum-based non-fungible tokens (NFTs), adding another significant dimension to its utility. As the NFT marketplace continues to expand rapidly, the demand for ETH is correspondingly rising, further solidifying its position as a sought-after asset in the crypto space.

Investors eyeing Ethereum today can capitalize on a substantial discount compared to its previous all-time high of nearly $5,000. This presents an opportune moment for potential investors to enter the market at a more favorable price point, potentially positioning themselves for significant gains in the future.

What Are The Risks?

While Ethereum’s volatility presents the potential for significant rewards, it also entails the risk of substantial losses. Therefore, it’s crucial to carefully assess the risks before engaging in any trades. Furthermore, it is worth following other similar projects such as Solana or Cardano, for example, as they can outperform Ethereum and take over its market share.

12. Arbitrum (ARB) – Instant Solution to Ethereum’s High Fees and Scalability Restrictions

• ATH: $2.40
• ATL: $0.7453
• Total supply: 10,000,000,000 ARB

One of the top utility crypto coins that investors can get today is Arbitrum. It is a layer-2 solution for the Ethereum blockchain that solves the issues of high fees and scalability.

Why Do We Like Arbitrum?

According to CoinMarketCap, over 220 ERC-20 projects have successfully transitioned to Arbitrum. This upgrade significantly enhances scalability, boosting transaction throughput from 30 transactions per second to an impressive 40,000. Additionally, projects bridged to Arbitrum stand to gain from substantially reduced transaction fees, further incentivizing migration to the upgraded protocol.

The platform works without central operators or sequencers to arrange transactions. Instead, it employs a decentralized network of validators who stake ARB tokens to secure the network and earn fees.

Arbitrum’s ecosystem expansion is evident in its Total Value Locked (TVL) metric. As per DeFiLlama, Arbitrum’s TVL surged to a peak of $3.2 billion in November 2021, currently resting at approximately $1.85 billion. This positions it as the leading Layer 2 ecosystem in terms of TVL.

The platform has its native utility token, ARB, which serves two purposes. Firstly, it functions as a means of paying fees within the Arbitrum ecosystem. Secondly, it is a governance token, empowering holders to participate in key decision-making processes by voting on proposals put forth by the Arbitrum community. This multifaceted utility enhances user engagement and fosters a sense of ownership among stakeholders within the ecosystem.

What Are The Risks?

While Arbitrum offers considerable benefits, it’s important to acknowledge potential risks associated with the platform, such as the possibility of outdated off-chain data from inactive sequencers, logic errors stemming from time-based factors, failed permission checks, and susceptibility to denial-of-service (DoS) attacks.

13. The Sandbox (SAND) – Metaverse Ecosystem Supporting Real Estate Investments 

• ATH: $8.44
• ATL: $0.02894
• Total supply: 3,000,000,000

The Sandbox is a metaverse ecosystem that gained prominence in the previous bull market. It permits investors to buy land plots backed by NFTs, offering full ownership akin to real-world property.

Why Do We Like The Sandbox?

The Sandbox metaverse has different neighborhoods, some more exclusive than others. Notably, Snoop Dogg’s acquisition of a virtual mansion in 2021 elevated the value of surrounding land, with one investor paying over $450,000 to reside nearby. However, these transactions pale compared to the largest land purchases of 2021.

As reported by CNBC, an investor recently spent over $4.3 million on land within the Sandbox metaverse. Notably, all land acquisitions in the Sandbox are transacted using SAND, the project’s native utility token. SAND is listed on numerous tier-one exchanges and presently boasts a market capitalization nearing $1 billion. However, this marks a considerable decrease from the project’s valuation of $7 billion in late 2021.

By introducing the SAND token, the platform fosters decentralized governance, providing users with a platform to voice their opinions and contribute ideas to project development. 

Decentralized governance is increasingly essential for blockchain-based projects to ensure community involvement and maintain transparency and fairness in decision-making processes.

What Are The Risks?

Blockchain gaming is in its early stages, without a clear, sustainable product-market fit model. The Sandbox faces tough competition from major crypto players and established gaming giants like Roblox. Despite undergoing audits, it has identified vulnerabilities, with two issues unresolved. Concerns also arise about token unlocks, potentially causing significant price drops, as much of the value is held by The Sandbox or early investors.

What are Utility Tokens?

Crypto Utility: Explained and Analyzed

Now, let’s dig a little deeper into the different types of utility within the cryptocurrency ecosystem.

GAS Fees

GAS fees, also known as transaction fees on the Ethereum blockchain, are essential for network operations and act as the fuel that powers Ethereum. For example, we mentioned earlier that Ethereum is used by over 10,000 projects, including everything from the most prominent decentralized exchanges to play-to-earn games. 

While other cryptocurrencies may use terms like transaction fees or miner fees, Ethereum’s prominence often leads to the broader application of the term “gas” to describe the fees incurred for work execution on various blockchains. 

Exclusive Payment Method

Another way that cryptocurrencies can have utility is if they act as the exclusive payment method for a specific product or service. For example, you can only use the BAT token if you want to pay or get paid for using the premium services of the Brave browser.

In these scenarios, utility tokens experience increased demand when more people wish to access the respective products or services. Hence, increased demand often leads to price appreciation.

Layer 2 Services 

Another angle to explore is layer-2 service providers like Arbitrum – ERC-20 projects bridging to the Arbitrum network benefit from increased transaction throughput and reduced fees.

ARB, the network’s native utility token, is required when bridging to Arbitrum. This is also the case for other layer-2 solutions, with MATIC tokens required when bridging to the Polygon network, for example.

Metaverse Real Estate 

Some of the best utility coins can be found within the metaverse space. SAND tokens are required when buying virtual plots of land in the Sandbox, and MANA tokens are the only currency accepted when buying plots in Decentraland.

This means that investors need to buy the respective utility token should they wish to buy a stake in the metaverse. Moreover, investors will receive the utility token when selling their metaverse land.

Staking 

Staking plays a pivotal role in the utility token landscape, providing investors an avenue to earn additional rewards. Take, for instance, Smog, which has implemented a robust staking mechanism offering enticing bonus rewards. By staking $SMOG, users can enjoy an appealing annual return of 42%, incentivizing active participation in the project and fostering community engagement.

Rewards  

Some utility tokens serve diverse functions within cryptocurrency ecosystems, acting as reward currencies in various applications. For example, play-to-earn games like Crazy Tuk Tuk Taxi, developed by eTukTuk, offer players the opportunity to earn additional $TUK tokens. In this game, players can compete to become the fastest in picking up and dropping off customers, earning rewards in the form of $TUK tokens. This gamified incentive system not only enhances user engagement but also promotes an active community within the gaming ecosystem.

How to Identify The Best Utility Tokens?

Identifying the best utility tokens crypto projects requires thorough research and consideration. Here are steps to pinpoint promising options:

• Understanding the project: Research the crypto project linked to the native utility token. Explore its goals, team, technology, and potential use cases, including whether it’s Ethereum-based (ERC-20) or built on other blockchain networks. Look for this information in whitepapers or documentation.
• Detailed tokenomics analysis: Analyze the utility coin’s tokenomics, covering its supply, distribution, and operational mechanisms. Evaluate factors like total token supply, release schedules, and potential burn or buyback mechanisms.
• Assess adoption and partnerships: Look carefully at the project’s level of adoption and partnerships, including collaborations with reputable companies, other crypto projects, or networks, and signs of real-world usage or interest from users and developers.
• Community and governance evaluation: Engage in forums, social media, or official channels to determine the support and engagement levels. Additionally, evaluate the project’s governance model to understand decision-making processes and community input considerations.
• Take note of market trends and analysis: Review the overall sentiment towards crypto coins with utility and the specific sector or industry the project operates in. Stay updated on regulatory developments and potential risks that may affect the utility token’s prospects.
• Consult experts: Gather insights from reliable sources, industry experts, and analyst reports about the utility token and its associated project. Additionally, various viewpoints should be considered, such as using social media or online forums to access information on utility coin crypto projects.
• Be cautious and conduct due diligence: Investing in crypto utility tokens involves risks such as market volatility, regulatory uncertainty, and project-specific risks. Conduct detailed due diligence to evaluate your risk tolerance, and consider seeking professional financial advice even before purchasing the best utility tokens.

Things to Consider Before Buying Utility Cryptos

Predicting a utility token’s future demand and value is a challenging feat. In fact, with such a large number of utility tokens in the market, picking the next crypto to explode has never been more challenging.

This is why diversification is so important. Consider including many projects and use cases in your portfolio rather than attempting to pick one utility token. We covered 12 of the best utility coins, but there are thousands more to choose from.

Additionally, consider building a portfolio that covers utility tokens at various stages of development. For example, we discussed established utility tokens with billion-dollar valuations, such as Ethereum, Arbitrum, and The Sandbox.

Ultimately, investors can avoid putting all of their eggs into one basket by investing in a broad range of utility tokens.

Conclusion: Are Utility Tokens a Good Investment?

Utility tokens are attractive to investors seeking solid long-term gains. Unlike meme coins and other types of cryptos, the best utility tokens have an actual use case. This means people will buy utility tokens to access specific services within a blockchain ecosystem.

In our view, one of the best utility coins to buy today is Pepe Unchained ($PEPU). This newly launched presale token offers the chance for meme coin exposure and passive staking rewards. 

Pepe Unchained is built on Ethereum’s L2 network, which offers faster transaction speeds and lower gas fees.

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