Now that Ethereum has successfully completed its merge, the number of platforms, dApps, and tokens released on its blockchain will continue to rise. Unfortunately, there are now so many it can be hard to keep track of them all. To help we have comprised a list of the top 10 ERC20 Tokens on the market today that could be a great addition to any crypto portfolio.
Top 10 Ethereum ERC20 Tokens To Buy In 2022
- BudBlockz
- UniSwap
- 0x (ZRX)
- Chainlink
- Tether
- Shiba Inu
- The SandBox
- Aave
- Wrapped Bitcoin
- Loopring
BudBlockz (BLUNT)
BudBlockz is a developing ecosystem that is ideally situated to profit from the expanding legalization and decriminalization of marijuana around the world. The platform and its BLUNT token are created to aid in and profit from the expansion of the marijuana market, which is anticipated to reach a value of $175 billion in ten years.
The BudBlockz platform is a perpetually accessible online store where customers may purchase, sell, and exchange cannabis items peer-to-peer utilizing BLUNT securely and privately. They also benefit from several member discounts and privileges.
Investors’ attention, however, has been drawn to some other benefits. Holders of BLUNT have access to platform discounts, staking possibilities, and other benefits in addition to the option to own a portion of marijuana-related enterprises like farms, shops, and cafes.
Investors can get direct exposure to this quickly growing industry thanks to the blockchain, independent of their location or local regulations. Essentially, this is a global open market and investment opportunity for one of the world’s industries with the quickest rate of growth.
Additionally, the BudBlockz ecosystem is governed by the BLUNT token, allowing holders to influence how the new platform will evolve in the future. In addition, there are some other planned activities, including the introduction of the NFT.
The ability to invest in both the cannabis business and a well-liked new cryptocurrency at the same time has led to significant demand. After selling all of the tokens allotted to the wildly successful private sale, the BLUNT coin is still up for presale. Naturally, this has already increased the price from $0.015 to $0.026, and once the token is formally issued, additional increases are inevitable.
The BLUNT cryptocurrency is crucial for any portfolio due to the BudBlockz platform’s functionality, community, and connections to the cannabis industry.
UniSwap (UNI)
Launched in 2018, UniSwap is the biggest and most well-known decentralized exchange (DEX) on the Ethereum blockchain. The majority of cryptocurrencies are traded on sizable, centralized platforms, which frequently causes liquidity issues. Uniswap has an automated liquidity protocol that encourages users to pool funds, with each coin having its pool, to get around this problem.
An adaptation of the Automated Market Maker model (AMM), developed by UniSwap, determines the market and trade prices. In this, liquidity reserves are held by smart contracts, and prices are determined by algorithms based on supply and demand.
At this time, the UniSwap platform is not profitable. Transaction fees for trades automatically flow to the liquidity pool thanks to its decentralized design. Liquidity providers can then use them to reward customers.
UNI is the native token of Uniswap. In 2020, 400 UNI tokens were airdropped as a thank-you to anybody who has utilized the platform. This marked the beginning of the UNI token era. This was worth more than $1000 at the time. Users can now earn UNI by staking tokens in the liquidity pools of the site.
The UNI token serves as the platform’s governance, with holders having the ability to vote on ideas and influence platform development. Only those possessing 1% or more of the issued tokens, nevertheless, are eligible to propose recommendations.
The popularity and user base of the UniSwap platform affect the value of the UNI coin. Since UniSwap is one of the most well-known and utilized decentralized exchanges, including it in a portfolio is advised.
Furthermore, it will probably keep increasing in value for many years because it gives users access to the newest and least liquid cryptocurrencies, which frequently aren’t listed on more centralized exchanges.
0x (ZRX)
A DEX built on the Ethereum blockchain is called Ox. It was established in 2016 and functions as a peer-to-peer exchange where users may trade ERC20 tokens and a variety of other assets using smart contracts. Its token ZRX primarily serves two purposes. The first involves paying relayers’ trading fees, while the second concerns governance.
The platform is made to allow anyone can use the Ox Launch kit to create a DEX on top of Ox. Additionally, it has introduced the Ox API, which aggregates liquidity throughout its entire network. Relayers are those that create a DEX based on the Ox protocol and host off-chain order books.
The exchangeable tokenized assets on the platform include gold, equities, real estate, video game goods, and many more. Ox was created to encourage collaboration among decentralized applications, or dApps, that have exchange components.
One billion ZRX tokens are available for purchase, half of which will be made available to the general public through an ICO. Additionally, users and partner dApps receive tokens.
Transaction fees, which are transferred from individuals who create or consume smart contracts to the relayer whenever a deal is settled, are required of relayers in exchange for hosting an off-chain order book. Since it is an off-chain relay with an on-chain settlement, the assets are never in the relayer’s possession. Thus, gas prices and traffic are decreased.
ZRX’s value comes from its use as a governance token and utility token. Its value is probably going to keep increasing because of the supply cap.
Chainlink (LINK)
Launched in 2017, Chainlink is a decentralized “oracle” network. Oracles often referred to as middleware, serve as connectors between off-chain data and the blockchain because smart contracts are on-chain but require off-chain data.
To facilitate communication between outside sources and its users, Chainlink employs three procedures. The first step is oracle selection, in which the data requirements are established and the best oracle is then selected. The second has to do with how oracles gather information and relay it to blockchain-based contracts. The last step is result aggregation, which entails totaling all the outcomes.
To promote accurate data, Oracles on the Chainlink network have reputation scores assigned to them. They are additionally encouraged to abide by the rules and offer useful data by being compensated with the LINK token, which is native to the network.
The only money needed for essential network functions, the LINK token guarantees the execution of smart contracts. For instance, LINK is used to pay node operators and as a deposit to make sure that oracles and creators of smart contracts get along nicely. An oracle’s reputation can therefore be determined by the amount of LINK it holds.
To maintain value, LINK tokens are tradable and capped at 1 billion. The value of the token will increase in proportion to the number of projects utilizing the already well-liked Chainlink network. LINK is a great addition to a portfolio if investors think the use of blockchain-based smart contracts will keep growing, which appears plausible.
Tether (USDT)
Tether Limited is an established player in the cryptocurrency market, having started operations in 2010. It originated from the notion that the Omni Layer protocol may be used to issue money on the Bitcoin network.
As a platform that issues blockchain assets tied to the value of public funds, it was introduced in 2014. As a result, it produced USDT, the first and most popular stablecoin. The Chinese Yuan (CNHT), the Euro (EURT), a stablecoin pegged to an ounce of gold (XAUT), and the USDT token are now supported by Tether. Since then, more have been added.
On the Bitcoin blockchain, Tether was first introduced using Omni and the Omni Explorer. The OMG Network, Tron, EOS, Algorand, and other blockchains are now among those that it is accessible to.
In 2019, Tether’s trading volume surpassed Bitcoin on the market and became the greatest for the USDT stablecoin on Ethereum. The network and its tokens with monetary backing are extremely well-liked.
The stability of stablecoins is undoubtedly what makes them appealing. The volatility that commonly impacts other cryptocurrencies tends not to have an impact on them. Furthermore, by using USDT instead of dollars, customers can benefit from the advantages of cryptocurrencies like cheaper transaction fees and quicker transfers and exchanges.
Although Tether’s value has periodically deviated from the currency to which it is anchored, its widespread use should comfort investors that this doesn’t happen frequently. It is advised to add a Tether token to a portfolio during periods of high volatility, like the present.
Shiba Inu (SHIB)
A decentralized cryptocurrency called Shiba Inu is named after a type of Japanese dog. It was created in 2020 by an unidentified developer by the name of Ryoshi to see what would transpire if a cryptocurrency was controlled by a community.
Shiba Inu is commonly used as a Dogecoin substitute that is Ethereum-compatible. It is also categorized as a “meme” coin, and like the majority of coins in this category, SHIB is deliberately overvalued. There are one quadrillion coins in the initial supply. The Shiba Inu ecosystem features two other tokens, LEASH, and BONE, despite SHIB being the most well-known on the platform.
Shiba Inu differ from other breeds in a few significant ways, though. As an Ethereum-based token, SHIB, for instance, is interoperable with the Ethereum ecosystem and ERC20 wallets and is offered on well-known DEXs like Uniswap.
The Shiba community has been able to develop new cryptocurrency apps thanks to Ethereum compatibility. For instance, ShibaSwap is a decentralized exchange that lets investors and users swap and stake tokens directly with each other. The ecosystem also includes Shiboshis, a collection of 10,000 distinct NFTs, and the Shiba Inu incubator, which attempts to discover new approaches to innovation and invention.
The price of SHIB tokens can fluctuate, much like other meme coins. A famous person’s tweet can have a big effect on price. However, the ecosystem gains from being on the Ethereum blockchain, the community is sizable and active, and the price has increased significantly since its debut.
The Sandbox (SAND)
Built on the Ethereum blockchain, The Sandbox is a decentralized “gaming metaverse” where users may purchase virtual plots of land and then develop experiences and games on them that can be shared with others. The platform enables users to design structures, items, and even 3D animals that they can own, trade, or sell using NFTs. Users can also create games that they may monetize.
Three main components make up the platform. The first one is the Voxel Editor, which enables users to create and animate models. In-game tokenized NFT ASSETS that people have created themselves or have been created by others can be traded on the marketplace. The Game Maker allows users to create 3D games using ASSETS on their property.
Although SAND is the main token for the network, two additional tokens are equally essential to its operation. ASSET tokens are NFTs that represent in-game objects like avatars, tools, or other creations, as was previously indicated. The LAND token, an Ethereum-based NFT, is a piece of digital real estate.
The ecosystem’s utility token is the native SAND. All interactions on The Sandbox platform are powered by a coin that is ERC20 compliant. It can be applied to land transactions as well as the creation, acquisition, and sale of assets. It serves as a governance token as well.
To ensure value, SAND’s supply has been restricted to 3 billion tokens. The price of the SAND coin is likely to increase as Web3 and the metaverse spread throughout society and more people use The Sandbox.
Aave (AAVE)
Without the need for a middleman, the Aave platform connects cryptocurrency borrowers and lenders directly. It accomplishes this by utilizing a system of smart contracts that carry out transactions depending on software automatically.
Users must provide collateral before they may borrow, like many other decentralized lending sites. They put their cryptocurrencies into a pool of liquidity so that they can be lent out to other people. Since customers are limited to the amount they can borrow, the platform will simply keep the deposit if they are unable to make payments.
Utilizing liquidity pools has the benefit of allowing users to borrow various coins. One might, for instance, add ETH to a pool and borrow MANA or DAI with the same value. Similarly to this, lenders can earn interest by adding a variety of assets to a liquidity pool.
The AAVE token’s value is derived from a few factors. By allowing holders to vote on amendments, new rules, and which assets should be added to the pools, it serves as governance. Additionally, the platform offers a “Safety Module” where holders can stake their AAVE to build a reserve fund if a borrower defaults and the protocol defaults on its obligations. Lenders will gain more AAVE and a portion of protocol fees as a result.
The platform is one of the most popular sites for cryptocurrency lending, and because AAVE tokens are limited in supply, they are often exchanged. As a result, its value is very likely to keep increasing.
Wrapped Bitcoin (wBTC)
Wrapped To serve as a link and enable transactions between Bitcoin and Ethereum, Bitcoin was created. It enables access to the expanding Ethereum ecosystem of decentralized financial applications for Bitcoin users. Additionally, it gives dApps built on Ethereum more liquidity.
Early in 2019, a team that included BitGo, the Kyber Network, and Republic Protocol designed and launched the project (REN). It needs a custodian, BitGo, who mints wBTC after receiving bitcoin, for it to function. The surplus wBTC is then burned when the tokens are converted back, by businesses like the Kyber Network and Ren, before being distributed to consumers.
The WBTC DAO, which consists of a mixture of merchants, custodians, and other parties, oversees the initiative. The DAO makes decisions about topics like modifications to the wBTC minting smart contracts.
The two biggest cryptocurrencies, Ethereum and Bitcoin, didn’t have many bridges connecting them before the creation of the Wrapped Bitcoin project. Since the price of wBTC is backed by BTC in a 1:1 ratio, changes in the price of Bitcoin have a direct impact on it.
However, the fact that owners of wBTC may use their Bitcoin in the Ethereum ecosystem and its massive number of dApps is what makes it so alluring. Additionally, investors now have another means to access Bitcoin without having to go through a centralized exchange and the associated costs and wait times thanks to Wrapped Bitcoin’s ERC20 compatibility.
Loopring (LRC)
Using the Loopring protocol, a DEX without a custody order book can be created. Its main selling point is that, although being based on Ethereum, it has created a “layer 2” technology that enables substantially faster transaction fees and far lower prices.
This is accomplished by using rollups, a kind of scaling system, and zero-knowledge proofs. Together, these are referred to as ZkRollups, and they allow Loopring to speed up some computations while maintaining security by performing them off the Ethereum network.
The native LRC token of Loopring, which complies with ERC20, is employed in significant protocol operations. The token also comes with some other features. For instance, it can be staked to receive a portion of the 70% protocol fees collected by the platform’s exchanges.
DEX operators may be motivated to work efficiently by it as well. On Loopring, those who want to open a DEX must lock up a certain amount of LRC, which can be taken away if they behave badly.
The fact that the total supply of LRC tokens is limited to 1.375 billion and that 10% of fees are burned increases they’re worth. This implies that the supply of LRC tokens will eventually run out, necessitating their inclusion in a portfolio.
