Top 10 ERC20 Tokens (by market cap)
ERC-20 tokens are digital assets that exist on the Ethereum blockchain and are designed to be interchangeable with each other.
Table of Contents
- What is an ERC20 token
- What is it used for
- Top 10 ERC20 tokens by market cap
- Where can you buy ERC20 tokens?
- FAQs
What is an ERC20 token?
ERC-20 tokens are digital assets that exist on the Ethereum blockchain and are designed to be interchangeable with each other. In simpler terms, it's like having a collection of identical tokens where each token is equivalent to any other token in the same set.
Imagine you have a group of US dollars in your pocket. Each dollar bill looks the same as any other dollar bill. Similarly, ERC-20 tokens are like these interchangeable units on the Ethereum network.
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Each ERC-20 token is identified by a unique ticker symbol like ABC or XYZ, helping distinguish one set of tokens from another. For example, there might be a specific number of ABC tokens and another number of XYZ tokens, each serving different purposes within the Ethereum ecosystem.
These tokens can be stored in most Ethereum wallets and are compatible with any Ethereum wallet address, allowing for easy storage and transfer within the Ethereum network.
Each ERC-20 token brings its own unique functionality and role in the blockchain ecosystem, much like different denominations of currency serving various purposes in the financial world.
What are ERC20 tokens used for?
ERC-20 tokens have various use cases. Here are some examples to illustrate how they are used:
1. Stablecoins: These tokens are tied to stable assets like traditional currencies (e.g., USD Coin) and offer stability in value compared to volatile cryptocurrencies.
2. Governance tokens: Holders of these tokens have voting rights in decentralised organizations (e.g, Maker), allowing them to participate in decision-making processes.
3. Utility tokens: These tokens grant access to a project's platform or services (e.g., Basic Attention Token for the Brave browser), enabling users to interact within specific ecosystems.
4. Asset-backed tokens: Tokens represent ownership of physical or digital assets (e.g., tokenized gold or real estate), allowing for fractional ownership and easier transferability of assets.
5. In-game currencies and items: ERC-20 tokens can serve as in-game currencies or items in virtual worlds or games, simplifying transactions and enhancing the gaming experience for players.
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Top 10 Erc20 Tokens By Market Cap
1. Tether USD (USDT)
2. USD Coin (USDC)
3. Lido Staked Ether (stETH)
4. Shiba Inu (SHIB)
5. Wrapped liquid staked Ether 2.0 (wstETH)
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6. Wrapped BTC (WBTC)
7. Wrapped Ether (WETH)
8. Chainlink (LINK)
9. Polygon (MATIC)
10. Uniswap (UNI)
Where can you get/buy/swap ERC20 tokens?
ERC-20 tokens are typically available to purchase or trade on centralized and decentralized cryptocurrency exchanges.
On Obiex, you can buy and swap ERC20 tokens including USDT, USDC, MATIC, SHIB and more.
Download the Obiex app on your Playstore/App Store or visit the Obiex website to get your ERC20 tokens today!
Disclaimer: This article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.
