Top 10 Ethereum ERC20 tokens to buy in 2022
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
- 0x (ZRX)
- Shiba Inu
- The SandBox
- Wrapped Bitcoin
What Is ERC-20?
ERC-20 is the standard protocol for fungible tokens made with the Ethereum blockchain. A token that can be swapped with another token is said to be “fungible.”
ERC-20 enables the exchange of various smart-contract enabled tokens. Tokens are a way to represent an asset, cryptocurrency, or anything else that isn’t unique but can be transferred from one entity to another.
Here are ten of the best ERC20 tokens you can buy.
BudBlockz is a growing ecosystem perfectly positioned to benefit from the increasing legalization and decriminalization of cannabis worldwide. The platform and its BLUNT token are designed to support and benefit from the growth of the marijuana industry, which is predicted to be worth $175 billion within a decade.
The BudBlockz platform is a permanently open online e-commerce store where users can securely and anonymously buy, sell, and trade cannabis products peer-to-peer using BLUNT. They also gain numerous membership benefits and discounts.
However, several other advantages have caught the attention of investors. In addition to platform discounts, staking opportunities, and other rewards, BLUNT holders can purchase percentage ownership of marijuana businesses such as farms, dispensaries, and cafes.
As this is done via the blockchain, investors can gain direct exposure to this rapidly expanding sector, regardless of location and local laws. This is essentially a global open market and investment opportunity for one of the fastest-growing industries on the planet.
In addition, the BLUNT token acts as governance for the BudBlockz ecosystem, so holders have a say in the future development of the new platform. There will also be an NFT launch and several other plans and events in the pipeline.
The combination of being able to simultaneously invest in a popular new cryptocurrency and the cannabis industry has resulted in high demand. The BLUNT token is still in presale after having sold all tokens allocated to the highly successful private sale. Not surprisingly, this has already driven up the price from $0.015 to $0.026, with further gains likely once the token is officially launched.
UniSwap is the largest and best-known decentralized exchange (DEX) on the Ethereum blockchain and was launched in 2018. Most cryptocurrencies are traded on large centrally controlled platforms, and this tends to result in liquidity problems. To avoid this issue, Uniswap uses an automated liquidity protocol where users are encouraged to pool money together, with each token having its own pool.
The market and trade prices are set by a variant of the Automated Market Maker model (AMM) pioneered by UniSwap. This uses smart contracts to hold liquidity reserves, with algorithms setting prices based on supply and demand.
The UniSwap platform doesn’t currently make any money. Its decentralized design means transaction fees for trades automatically go to the liquidity pool. They can then be redeemed as a reward by liquidity providers.
Uniswap’s native token is UNI. The UNI token was first introduced in 2020, with 400 tokens airdropped as a reward to anyone who had used the platform. This equated to over $1000 at the time. Users now earn UNI by staking tokens in the platform’s liquidity pools.
The UNI token acts as governance, with holders able to vote on proposals and have a say in the development of the platform. However, only those with 1% or more of issued tokens can submit proposals.
The value of the UNI token is linked to the success of the UniSwap platform and the number of users. UniSwap is one of the most popular and well-used decentralized exchanges, so it is a recommended addition to a portfolio.
Furthermore, as it provides access to the newest and less liquid cryptos that often don’t feature on more centralized exchanges, it will likely continue gaining value for many years.
Ox is a DEX based on the Ethereum blockchain. It was founded in 2016 and is a peer-to-peer exchange for trading ERC20 tokens and numerous other assets using smart contracts. Its token ZRX has two primary roles. The first is paying trading fees to relayers, and the second is for governance.
The platform is designed so that anyone can build a DEX on top of Ox with the Ox Launch kit. It has also launched the Ox application programming interface with aggregate liquidity across its entire network. Those who build a DEX on the Ox protocol are known as relayers, and they host off-chain order books.
The platform provides a way to exchange a wide variety of tokenized assets, including gold, stocks, real estate, and video game items. Ox was developed to promote interoperability between decentralized applications, or dApps, that include exchange components.
ZRX supply is capped at 1 billion tokens, with half sold to the public through an initial coin offering. The tokens are also issued to partnering dApps and users.
Relayers must host an off-chain order book in exchange for transaction fees, which are then moved from those who make or take smart contracts to the relayer once a trade is settled. It is an off-chain relay with on-chain settlement, so the relayer never has custody of the assets. This reduces gas fees and congestion.
The value of ZRX stems from its use as a utility token and a governance token. As its supply is capped, its value is likely to keep rising.
Chainlink is a decentralized ‘oracle’ network launched in 2017. As smart contracts are on-chain but need off-chain data, oracles – also known as middleware – act as intermediaries to link real-world data to the blockchain.
Chainlink uses three processes to facilitate communication between external sources and its users. The first is oracle selection, where the data requirements are set and then matched with the most suitable oracle. The second relates to how oracles collect the data and send it back to contracts running on the blockchain. Finally, there’s result aggregation, which involves tallying all the results.
Oracles on the Chainlink network have a reputation score assigned to them to encourage accurate data. They are further incentivized to follow the rules and provide valuable data by being rewarded with the platform’s native LINK token.
The LINK token ensures the successful execution of smart contracts and is the only currency used for key network operations. For example, LINK is used to pay node operators and also as a deposit to ensure smart contract creators and oracles work well together. So, the amount of LINK held by an oracle is an indicator of its reputation.
LINK tokens are tradable and limited to a cap of 1 billion to ensure value. The token’s price will grow in line with the number of projects using the already popular Chainlink network. So, if investors believe blockchain-based smart contracts will continue to increase, as seems likely, LINK is an excellent addition to a portfolio.
In the world of cryptocurrencies, Tether Limited is old, with its origins dating back to 2010. It formed from the idea that the Bitcoin blockchain could be used to issue cash using the Omni Layer protocol.
It was launched in 2014 as a platform that issues blockchain assets linked to the value of government monies. Consequently, it created USDT, the first and still most widely used stablecoin. Since then, others have been added, and Tether currently supports the Chinese Yuan (CNHT), the Euro (EURT), a stablecoin linked to an ounce of gold (XAUT) and the USDT token.
Tether was originally launched on the Bitcoin blockchain, using Omni and the Omni Explorer. However, it is now available on other blockchains, including Ethereum, Tron, EOS, Algorand, and the OMG Network.
The largest market for the USDT stablecoin is now on Ethereum, and in 2019, Tether’s trading volume became the highest on the market, including Bitcoin. The platform and its currency-backed tokens are incredibly popular.
The appeal of stablecoins obviously lies in their stability. They tend not to be affected by the volatility that frequently affects other cryptocurrencies. In addition, having USDT as opposed to a dollar means users can leverage the advantages of crypto, such as lower transaction costs and faster transfers and trades.
It should be noted that Tether’s value has occasionally fluctuated away from the currency it is pegged to, but its popularity should reassure investors that this doesn’t happen often. In times of volatility, such as now, a Tether token is a recommended addition to a portfolio.
Shiba Inu (SHIB)
Shiba Inu is a decentralized crypto named after a breed of Japanese dog. It was launched in 2020 by an anonymous developer called Ryoshi and was designed to see what would happen if a cryptocurrency was entirely run by a community.
Shiba Inu is frequently seen as an Ethereum-compatible alternative to Dogecoin. It is also classed as a ‘meme’ coin, and like most in this category, SHIB is intentionally abundant. The initial supply is one quadrillion coins. Although SHIB is the best-known token on the platform, the Shiba Inu ecosystem has two others, LEASH and BONE.
However, there are a few other aspects that set Shiba Inu apart. For example, as SHIB is an Ethereum-based token, it is compatible with the Ethereum ecosystem and ERC20 wallets and is available on popular DEX like Uniswap.
This Ethereum compatibility has allowed the Shiba community to create new crypto apps. For example, ShibaSwap is a decentralized exchange that enables users and investors to trade and stake tokens without any kind of intermediary. The ecosystem also has the Shiba Inu incubator that aims to find new methods of creativity and ingenuity, and Shiboshis – a collection of 10,000 unique NFTs.
Like other meme coins, SHIB tokens are prone to volatility. A tweet from a celebrity can significantly impact price. However, the community is large and engaged, the price has risen considerably since launch, and the ecosystem benefits from being on the Ethereum blockchain.
The Sandbox (SAND)
The Sandbox is a decentralized ‘gaming metaverse’ built on the Ethereum blockchain where users buy virtual plots of land and then create experiences and games on them that can be shared with others. The platform lets users create games – which they can monetize – and build structures, items, and even 3D creatures, all of which they own and can trade or sell through the use of NFTs.
The platform uses three core elements. The first is the Voxel Editor, which lets people build models and animate them. Then there is the Marketplace, where people can trade in-game tokenized NFT ASSETS that they or others have made. Finally, there’s the Game Maker, where users can build 3D games on their land using ASSETS.
Although SAND is the primary token for the platform, there are two others that also make it work. As mentioned, ASSET tokens are NFTs representing in-game items like avatars, tools, or other creations. The LAND token is a parcel of virtual real estate, which is also an Ethereum-based NFT.
The native SAND is the utility token for the ecosystem. It is an ERC20-compatible token that drives all interactions on The Sandbox platform. It can be used to create, buy, or sell ASSETS and for transactions involving LAND. It also acts as a governance token.
The supply of SAND has been capped at 3 billion tokens helping to maintain value. As Web3 and the metaverse become ubiquitous and more people use The Sandbox, the SAND token is likely to rise in price.
The Aave platform directly connects crypto borrowers and lenders without needing an intermediary. It does this by using a system of smart contracts that automatically execute transactions based on software.
Like a lot of other decentralized lending platforms, users have to post collateral before they can borrow. They deposit their cryptocurrency into a liquidity pool which can then be lent to others. They can’t borrow more than they put in, so if they are unable to repay, the platform simply keeps the deposit.
The advantage of using liquidity pools is that users can borrow different cryptocurrencies. For example, someone could add ETH to a pool and borrow an equivalent value of MANA or DAI. Similarly, lenders can add a variety of assets to a liquidity pool and earn interest.
There are a few aspects that give the AAVE token value. It acts as governance, allowing holders to vote on changes, new policies, and which assets should be added to the pools. The platform also has a ‘Safety Module’ where holders can stake their AAVE, thereby creating a pool of reserves in case of borrower default and the protocol going into debt. This will earn lenders more AAVE and a percentage of protocol fees.
The platform is one of the most used crypto lending platforms, and as AAVE tokens have a finite supply, they are often traded. Consequently, it is highly likely to continue rising in value.
Wrapped Bitcoin (wBTC)
Wrapped Bitcoin was developed to act as a bridge and facilitate transactions between Bitcoin and Ethereum. It allows Bitcoin users to access the growing Ethereum ecosystem of decentralized finance applications. It also provides more liquidity for Ethereum-based dApps.
The project was created and launched in early 2019 by a group that included BitGo, the Kyber Network, and Republic Protocol (REN). To make it work requires a custodian – BitGo – who is sent Bitcoin and then mints wBTC. Then, merchants like the Kyber Network and Ren distribute the wBTC to users and burn excess wBTC when the tokens are converted back.
The project is governed by the WBTC DAO, which comprises a mix of custodians, merchants, and other parties. The DAO decide things such as changes to the smart contracts used to mint wBTC.
Until the Wrapped Bitcoin project was established, there weren’t many bridges linking Ethereum and Bitcoin, the two largest cryptocurrencies. The price of wBTC is backed by BTC at a 1:1 ratio, so it is directly affected by fluctuations in Bitcoin price.
However, what makes wBTC so appealing is that holders can use their Bitcoin in the Ethereum ecosystem and its vast amount of dApps. In addition, as Wrapped Bitcoin is ERC20 compatible, investors have another way of gaining exposure to Bitcoin without having to go through a centralized exchange and the fees and delays that would incur.
Loopring is a protocol that enables the creation of a non-custodial order book-based DEX. Its primary appeal lies in the fact that although it’s built on Ethereum, it has developed a ‘layer 2’ system that allows for significantly faster transaction fees and much lower costs.
It does this through the use of zero-knowledge proofs and a type of scaling system called rollups. Together, these are known as ZkRollups, and they enable Loopring to complete some computations off the Ethereum blockchain and speed up the processes while remaining secure.
Loopring’s native LRC token is ERC20 compliant and is used for key protocol operations. The token also has several other utilities. For example, it can be staked to get a share of 70% of protocol fees that come from exchanges on the platform.
It can also act as an incentivization for DEX operators to perform properly. Those wanting to open a DEX on Loopring need to lock up a certain amount of LRC, which can be confiscated if they act poorly.
Adding further value to LRC tokens is the fact that they are capped at 1.375 billion, and 10% of fees are burned. This means the amount of LRC tokens will decline over time, making the addition to a portfolio a must.
Source: Analytics Insight