The New Gold Standard For Utility Tokens, Value Creation & Value Capture

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20 Jan 2025

Use Case & Utility
Use case and utility have always been integral to successful altcoin investment practices. This was until memecoins arrived on the scene and captured the market’s attention without providing any meaningful utility or use case. However, memecoins are an isolated case, any altcoin project that wishes to climb the ranks needs to provide value in this regard. A project that gets this right usually succeeds.
Utility tokens extend across multiple sectors within the Crypto space, and in many cases, can be earned by participating in the ecosystem. This is how new digital economies are born. It is often argued that projects that issue inflationary-based reward structures enforce counterintuitive measures for future price growth. This makes sense, but only if the utility is lacking.
For example, if everyone earning tokens within a particular ecosystem sells their tokens for alternative tokens or cash, the selling pressure is magnified. In other words, much of the trading activity becomes token holders constantly offloading their recently acquired rewards. In many cases, this is true. Many reward-based projects have very unattractive charts. On examination, the price action is down and to the right.
DePIN Utility Tokens Delivering Economic Strength
This is where DePIN is bucking the trend. Many DePIN tokens increase in value once they are launched and actively traded. In many cases, there is an initial dip. However, it is short-lived, and the upside resumes. This was not the case for a utility/governance token like JUP, which experienced an initial drop that continued for months. The price is the same as when it launched a year ago.
This highlights the strength and demand for DePIN utility tokens, as they are also subject to initial airdrop-related selling pressure and ongoing earning-related selling pressure. However, the charts are unique in that they display price appreciation and not stagnation. In many cases, the price action is up and to the right. GRASS is not an isolated case, many earlier DePIN projects experienced a similar dynamic.
Staking is a form of utility that aids in price appreciation. Some will argue it’s a bull market effect. However, compared to other altcoins, DePIN-based tokens are outperforming the benchmark significantly. Earning Nodepay (NC) and GRASS tokens from staking is a strong form of utility that defends the prices of these assets. The current NC staking reward is 60% APR.

Peaq-Based Passive Income

GRASS also offers a great yield at 40%, creating significant passive income streams. DePIN models are generally compounding by design. Firstly, the earnings are free via DePIN mining and secondly, those earnings can generate additional free yield via built-in staking models. DePIN is busy revolutionizing passive income within the Crypto space and the results speak for themselves.
Nodepay has just launched and is experiencing an initial correction. However, this is not uncommon. Like GRASS or other DePIN projects, the price must be revisited weeks later for a more accurate metric. Even GRASS corrected initially but later went on to explode to $4. Any airdrop-related launch will experience an initial correction. However, the true “state” or condition is seen soon after.
The market interprets and assigns value to these particular projects. This is evident in the price action of these assets. DePIN mining has enormous potential if appropriated correctly and at scale. This is an important point to note. A dedicated effort within this sector, together with a strategic plan that incorporates staking and ongoing yields, can produce meaningful results over the long term.

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Final Thoughts
Interoperability will significantly impact DePIN tokens and their future utility. These tokens can be utilized as transferable value, otherwise known as money. Tokenization, utility, and interoperability will change the “shape” and expression of money. However, it’s a journey, not an overnight destination. DePIN has a bright future. Are you part of it? See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.