10 Best Utility Tokens to Invest in 2023

Utility tokens are cryptocurrencies that have an actual use case to power the protocol or concept they are offering – a crucial metric for long-term investors.

They are different from purely speculative tokens, including a large number of meme coins, which exist only as investment vehicles with little other purpose.

In this guide, we discuss the best utility tokens to buy in 2023 – read on to discover the most in-demand utility crypto coins right now.

Reviewing the Crypto With the Best Utility

From an investment perspective, the utility of a cryptocurrency is very important. However, there are many other factors to consider before proceeding.

This includes the upside potential of the utility token and current market prices – not to mention whether or not the cryptocurrency has a unique value proposition or concept that means it stands apart in a crowded market.

Read on to discover our insights on the 10 best utility tokens to buy today.

1. AiDoge ($AI) – Overall Best Utility Token to Buy

AiDoge stands out as the best utility token in the current market climate. The project, currently in its presale, has developed a user-friendly yet highly unique tool that can create memes from text instructions.

For example, suppose the user wants to create a meme that highlights their joy of the Kansas City Chiefs winning the Super Bowl – a simple text-based instruction would enable AiDoge to instantly create a unique meme.

This is because AiDoge is backed by artificial intelligence and there is no manual input required from the user. What’s more, AiDoge even gives the option of backing memes with NFTs – this will appeal to meme creators that want to protect their creations, especially if it has a chance of going viral.

In terms of utility, AiDoge’s native token, $AI, is needed to create memes. Its meme generation tool requires credits, and the only accepted payment method is $AI tokens.

Moreover, $AI tokens also have utility as a staking coin, enabling users to earn free credits, which can be used to create further memes. In turn, the tokens are locked for a minimum number of days, temporarily removing them from circulation -this will appeal to long-term crypto investors seeking steady and sustainable growth.

Although AiDoge is an ERC-20 project, it is in the process of bridging to the Arbitrum network. This is crucial, as it will ensure that memes can be created cost-effectively and without scaling restrictions. While simultaneously, the project will still benefit from Ethereum’s unparalleled security and speed. We also like that AiDoge is creating a public wall that displays the most popular memes – voted for by the community.

This feature will motivate users to create the best memes possible, considering that additional rewards are available. The best thing about AiDoge is that the project is brand new and emerging crypto project that is currently running its presale campaign, enabling early investors to secure a first-mover advantage. This is because the AiDoge presale offers $AI tokens at a discounted price before its initial exchange listing.

The AiDoge presale has set a hard cap target of $14.9 million but that is already more than 80% complete. Not so surprisingly, the presale has been a huge success, with over $12 million raised so far, with tokens currently on sale for $0.0000324 per $AI token. After the presale finishes – which is expected in the coming days, $AI will then be listed on an exchange.

Although AiDoge is one of the best utility tokens to buy, investors should proceed with caution. After all, AiDoge is new to the market and has no prior track record to analyze. Moreover, the crypto presale space is quickly becoming oversaturated. This makes it more difficult than ever to find a new crypto with the most potential. That said, while AiDoge is considered a risky investment, its small market capitalization offers an attractive upside.

2. yPredict (YPRED) – Predictive Models to Automate the Crypto Analysis Process     

yPredict will also appeal to high-risk, high-return investors seeking the best utility tokens to buy. This newly founded project has developed an all-in-one ecosystem for predictive models. yPredict helps traders navigate the crypto markets, removing the need to waste hours on manual analysis and research. This is because the project provides real-time insights via artificial intelligence and machine learning.

For example, there are predictive models that automate the technical analysis process, highlighting key trends and potential market moves. There are also predictive models that provide trading signals, including the suggested entry and exit prices – yPredict even provides sentiment analysis, highlighting the hottest coins to buy based on core technical data.

Importantly, yPredict does not create the predictive models that it lists on its marketplace, instead, predictive models are created by external data scientists and quant traders. This enables experts to monetize their models to an ever-growing community and crucially, yPredict models are sold via a subscription model – payable in YPRED.

This is the native utility token fueling the yPredict ecosystem. As such, this creates demands for the tokens, as YPRED is the only accepted payment method for buying predictive models. We also like that predictive models go through a highly stringent testing process before being listed on yPredict – this is facilitated by the yPredict decentralized autonomous organization (DAO).

The yPredict DAO will trial new predictive models and transparently publish the results. This ensures that users can make an informed decision before subscribing to a model. Another use case for YPRED tokens is the yPredict staking mechanism, with those staking YPRED receiving a share of the subscription fees generated by predictive model sales.

That said, the success of yPredict will be dependent on the performance of the predictive models it sells. If there isn’t enough demand from the markets, this will have a direct impact on the value of its token and considering that YPRED is a presale project, this further increases the risk factor. After all, yPredict notes that YPRED tokens will be listed on exchanges with a market capitalization of just $6.5 million. As such, investors should expect enhanced volatility.

Nonetheless, those with an appetite for low-cap utility tokens with a solid use case might wish to check out the ongoing presale. So far, yPredict has raised over $1.5 million from early investors.

The presale offers a huge discount too – while investors will pay just $0.07 today, making it one of the best cryptos to buy under $1. YPRED will be listed on exchanges at $0.12 after the presale, an immediate upside of 70%.

3. Ecoterra (ECOTERRA) – New Blockchain Startup Revolutionizing How People Recycle  

Ecoterra is a new crypto startup revolutionizing the recycling industry through blockchain technology, with its unique recycle-to-earn concept rewarding people for recycling household goods. This includes everything from clothing and glass to plastics and electronics, with rewards paid in the project’s native utility token, ECOTERRA.

The recycle-to-earn concept is being brought to consumers via the mobile ecoterra app. The app initially informs users of their nearest reverse vending machine (RVM) for the items they wish to recycle, with the user then scanning their items via the app and depositting them in the RVM. Within seconds, the app will add the ECOTERRA rewards to the user’s account.

This process is repeated every time items are recycled. What we really like about the project is that ECOTERRA tokens have a wide range of use cases – for example, users can allocate their ECOTERRA tokens to green projects, which might include new renewable energy startups or tree planting. ECOTERRA tokens can also be used to offset the user’s carbon footprint.

The project is also partnering with green companies, enabling users to buy eco-friendly products with their ECOTERRA tokens. Moreover, ECOTERRA tokens also offer utility for those in the business-to-business sector, as ecoterra has developed a global database of recycled raw material suppliers. In turn, companies can buy raw materials with ECOTERRA tokens.

Another feature of ecoterra is its ‘impact tracker’, a shareable badge that highlights the user’s positive impact on society. For instance, the impact tracker will display the amount of recycled goods that have been deposited and will also show whether the user has offset their carbon footprint and to what extent. This feature will also appeal to brands that wish to display their green credentials.

In terms of buying ECOTERRA tokens, the project is currently in the presale stage, where it is undergoing one of the hottest private sales in the space. More than $4 million has been raised from those looking to invest in ecoterra from the ground up. The ecoterra presale also offers early investors a discounted price – while the current price is $0.0085, ECOTERRA tokens will be listed on exchanges at $0.01.

As always, investors should do their own research before investing in the ecoterra presale. The success of the project will be dependent on ecoterra achieving its ambitious roadmap targets, which cover various products and features. That said, the ecoterra whitepaper states that most development objectives will be completed by the end of 2023.

4. DeeLance (DLANCE) – Connecting Recruiters and Freelancers in the Web3 Era  

DeeLance is also a new blockchain startup that is solving real-world issues, with the project developing a decentralized platform to connect recruiters and freelancers. Built on the Ethereum blockchain, both parties will benefit from reduced transaction fees with DeeLance charging recruiters and freelancers 2% and 10%, respectively.

Our market research confirms that this is a lot more competitive than existing freelancing platforms. For example, Fiverr charges clients a service fee of 5.5% and charges freelancers 20%. Similarly,  Upwork charges clients a service fee of 5% plus a one-time charge of $4.95 per contract. DeeLance also makes freelancing agreements more transparent as they are backed by immutable smart contracts.

The terms of the agreement cannot be changed, ensuring that both parties get a fair deal. Moreover, once the working agreement is completed, the freelancer will instantly receive payment, with funds held in secure escrows and payments made in the project’s native utility token, DLANCE. If DeeLance is able to attract a sizable percentage of the freelancing market, this could create huge demand for its tokens.

After all, the freelancing market is estimated to be worth over $1.2 trillion in the US alone. While DLANCE tokens are yet to be listed on crypto exchanges, investors can make a purchase via the ongoing presale. The presale has raised around $1 million, and DLANCE is currently selling for $0.038. After the presale, DLANCE will be listed on exchanges at $0.057 – 50% higher than the current price.

5. Launchpad XYZ (LPX) – All-in-One Ecosystem to Gain Exposure to Web3 Investments  

Launchpad XYZ is building an all-in-one ecosystem that offers exposure to the growth of Web3. In particular, its platform is aimed at casual investors with limited knowledge and resources. For example, Launchpad XYZ enables users to buy fractionalized assets like real estate and supercars for a small price, as the assets are tokenized.

Launchpad XYZ is also building a decentralized exchange and wallet that will support cryptocurrencies across multiple blockchains, not to mention NFTs and fractionalized assets. While many features are available to all Launchpad XYZ users, some are reserved for premium members – this simply requires investors to stake the project’s native utility token, LPX, which is on our list for the best crypto winter tokens.

In doing so, this provides access to unreleased NFT launches, private presale campaigns, discounted commissions, and many other Web3 markets. Launchpad XYZ is newly launched, so its LPX tokens are currently being sold at presale prices.

The project aims to raise $12.5 million during the presale, and early investors will secure the lowest price possible. More than $500k has been raised in the presale at the time of writing.

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

As the world’s second-largest cryptocurrency by market capitalization, it will come as no surprise to see Ethereum on this list. Crucially, the Ethereum blockchain is used by thousands of projects and decentralized apps (dApps). In order to execute transactions, ERC-20 projects must pay GAS fees which are payable in ETH and which makes Ethereum one of the best utility coins to buy.

Let’s take Uniswap as a prime example, which is a decentralized exchange built on the Ethereum network. According to CoinMarketCap, Uniswap processed over $500 million worth of ERC-20 transactions in the prior 24 hours. Each of these transactions requires GAS fees and, thus – ETH. This is the case across all Ethereum-based ecosystems, from decentralized exchanges and metaverse projects to startups like AiDoge.

What’s more, ETH is also required when minting and transferring Ethereum-based NFTs. This is another huge marketplace that continues to grow, meaning that demand for ETH is following suit.

Those looking to invest in Ethereum today will secure a huge discount from its former all-time high of almost $5,000, with the price currently more than 60% lower.

Cryptoassets are a highly volatile unregulated investment product.

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

We found that Arbitrum is also one of the best utility tokens to buy. Put simply, this is a layer-2 solution for the Ethereum blockchain, solving the issue of high fees and scalability restrictions. To provide some context, we mentioned above that thousands of ERC-20 tokens use the Ethereum network – while beneficial for ETH tokens, fees remain extremely high, and transactions are limited to just 30 per second.

These inefficiencies are solved by bridging to the Arbitrum network and, according to CoinMarketCap, more than 220 ERC-20 projects have already completed this step. This increases scalability from 30 transactions per second to 40,000, with those bridged to Arbitrum also benefiting from much lower fees.

Arbitrum has its own utility token, ARB, which is used for paying fees and as a governance token, enabling holders to vote on key proposals made by the Arbitrum community.

ARB was listed on exchanges in March 2023, securing tier-one listings on eToro, Binance, Coinbase, Kraken, KuCoin, and many others. Since listing, ARB has declined by over 90% – for some, this offers an unprecedented discount, considering the project’s use cases.

Cryptoassets are a highly volatile unregulated investment product.

8. BNB (BNB) – Large-Cap Utility Token Fueling the Binance Ecosystem 

BNB is the best utility token to buy for exposure to Binance. The world’s biggest crypto exchange launched BNB in late 2017, and it is now the fourth-largest token by market capitalization. Crucially, Binance has created a wide range of use cases for BNB, ensuring that the token remains in high demand, including fuelling the Binance Smart Chain.

This blockchain network is home to almost 2,000 tokens. Any transactions executed on the Binance Smart Chain require GAS fees to be paid in BNB. Moreover, most tokens on the Binance Smart Chain are traded against BNB, creating further demand – BNB also entitles holders to a 25% discount on trading fees, while we also like that tranches of BNB tokens are regularly removed from circulation.

Binance frequently burns BNB tokens, with the platform reporting figures every quarter – in the most recent burn, Binance removed over $670 million worth of BNB from the circulating supply. As such, BNB is one of the best utility crypto coins for those seeking a deflationary investment. Currently, BNB is trading over 50% below its bull market peak.

Cryptoassets are a highly volatile unregulated investment product.

9. Chainlink (LINK) – Connecting Blockchains and Smart Contracts With the Real-World 

Launched in late 2017, Chainlink is a top-25 cryptocurrency by market capitalization and specializes in ‘oracles’, which bridge the gap between smart contracts and the real world. Put simply, Chainlink oracles can extract real-time data from verifiable sources, ensuring that smart contracts play a crucial role in the Web3 era.

For example, let’s suppose a decentralized gambling site offers sports betting markets. After a sporting event finishes, Chainlink oracles can scan real-time data points from trusted sources – not only does this enable the decentralized gambling site to verify the outcome of the event, but the smart contract can instantly release the winnings to players.

Online gambling is just one use case for the Chainlink ecosystem. Its oracles will find use in most industries, from insurance and banking to predictive markets and supply chains.

The project’s native utility token, LINK, is required to send oracle queries and is among the best Web3 coins – LINK has generated returns of over 4,000% since launching in 2017.

Cryptoassets are a highly volatile unregulated investment product.

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

The Sandbox is a metaverse ecosystem that created significant hype during the prior bull market. Put simply, the Sandbox metaverse enables investors to buy plots of land that are backed by NFTs. Just like real-world property, those buying land in the Sandbox own the plot outright. Moreover, the value of land rises and falls based on market demand.

There are various ‘neighborhoods’ in the Sandbox metaverse, some more exclusive than others. For example, Snoop Dogg purchased a virtual mansion in 2021, which increased the value of the land around Snoop Dogg’s plot, with one investor paying over $450,000 to live next door. That said, this is ‘small fry’ when compared to some of the biggest land purchases made in 2021.

For example, CNBC notes that an investor paid over $4.3 million for some Sandbox metaverse land. Nonetheless, all land purchases in the Sandbox are paid with SAND, the project’s native utility token. SAND trades on most tier-one exchanges and currently has a market capitalization of almost $ 1 billion. This is a sizable decline from the project’s $7 billion valuation in late 2021.

Cryptoassets are a highly volatile unregulated investment product.

What are Utility Tokens?

Utility tokens are cryptocurrencies that operate on a blockchain network. However, not all cryptocurrencies are utility tokens. Put simply, if a cryptocurrency has utility, this means that it has an actual use case within the project’s ecosystem.

• For example, we mentioned that ETH is the native utility token of Ethereum. ETH has utility because it is required to pay GAS fees when executing smart contract transactions.
• Similarly, $AI tokens are required when creating memes on AiDoge. This is because $AI is the only payment method accepted when buying meme credits.

In contrast, most cryptocurrencies do not have any utility. These are often referred to as ‘meme coins‘, as the growth of the project is exclusively based on hype and speculation. While some meme coins have witnessed success, most fail. This leaves investors with tokens worth a tiny fraction of the original investment price.

This is why seasoned investors will often focus on utility tokens – whether it’s Ethereum, BNB, Chainlink, or AiDoge, these projects have created a token required for a specific purpose. This means that Web3 users will purchase these tokens not only as an investment vehicle but to use or engage with the protocol and project they have developed.

For example, developers buy LINK tokens to access Chainlink’s oracle service, while recruiters need DLANCE to hire freelancers on the DeeLance platform. Similarly, manufacturers need ECOTERRA tokens to buy recycled raw materials on the ecoterra dashboard – with the token also given as a reward for users that recycle household waste.

Crypto utility tokens could see a huge surge in price in the next crypto bull run, which is expected within 18 months as Bitcoin approaches its next halving cycle.

Crypto Utility Explained

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

GAS Fees

One of the most common utilities for cryptocurrencies is to pay blockchain GAS fees, which are network/transaction fees for a particular blockchain. For example, we mentioned earlier that the Binance Smart Chain is used by almost 2,000 projects, including everything from decentralized exchanges to play-to-earn games.

Either way, any transactions conducted within the respective ecosystem must be paid in BNB. As such, this means BNB has real-world utility across a significant number of projects.

Exclusive Payment Method

Another way that cryptocurrencies can have utility is that they are the exclusive payment method for a specific product or service.

For example, AiDoge’s meme generation tools require users to buy credits. As noted earlier, credits can only be purchased with the project’s native utility token, $AI.

Similarly, DLANCE tokens are required by recruiters wishing to hire talent on DeeLance. The DLANCE tokens are deposited in escrow via smart contracts and automatically released to freelancers once the job is completed.

In these scenarios, utility tokens experience increased demand when more people wish to access the respective products or services. And 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 accepted currency 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 is another crucial aspect of the utility token scene. For example, we mentioned earlier that yPredict has developed a marketplace for crypto-predictive models.

yPredict enables users to stake their tokens, meaning they are locked for a certain number of days – during the staking period, investors earn a share of the revenues generated from yPredict subscriptions.

Rewards  

Some utility tokens serve as a rewards currency for crypto ecosystems. For instance, play-to-earn games like Tamadoge enable players to earn TAMA when completing tasks, including entering virtual pets into battle and playing mini-arcade games.

In another example, ecoterra rewards users with ECOTERRA tokens when they recycle. Whether it’s glass bottles or plastics – rewards are paid instantly after depositing items in a reverse vending machine.

The tokens can then be held as an investment, staked, sold on exchanges or used to fund other eco-friendly projects.

Are Utility Tokens a Good Investment?

Some crypto investors will only consider buying utility tokens, the reason for this being that utility tokens often have a greater chance of success and for being among the most profitable crypto coins. After all, cryptocurrency utility tokens represent more than just a speculative investment.

This is because many utility tokens are purchased by people outside of the investment space. For example, people wishing to create unique memes via the AiDoge dashboard will need to buy $AI tokens, with the tokens then swapped for credits, enabling people to generate memes.

Similarly, smart contract developers wishing to extract real-world data might consider buying LINK tokens, which enable them to access Chainlink oracles, bridging the gap between the real world and the blockchain space.

From an investment perspective, utility tokens fluctuate like any other asset class. Whether the tokens rise or fall in value will depend on market demand. As more people buy a specific utility token, its value will increase. But if demand wanes, this will have the opposite effect.

Things to Consider Before Buying Utility Cryptos

Predicting the future demand and value of a utility token is no easy 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. Rather than attempting to pick one utility token, consider gaining exposure to many different projects and use cases – we covered 10 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, BNB, and Chainlink.

At the other end of the spectrum, we also discussed some of the best utility tokens in presale – including AiDoge, yPredict, ecoterra, DeeLance, and Launchpad XYZ – which represent a higher risk, higher reward prospect to established crypto projects.

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

Conclusion

Utility tokens are attractive to investors seeking solid long-term gains. Unlike meme coins and other cryptocurrency types, utility tokens have an actual use case. This means that 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 AiDoge a meme coin and artificial intelligence project that requires users to buy its native token should they wish to use its meme-generation tool. AiDoge is currently in presale, so it’s a brand-new project.

The AiDoge presale has already witnessed unprecedented demand, with over $12 million raised so far in just four weeks – more than 80% of its hard cap. Although the presale is nearing its conclusion, investors can still secure an early-bird discount before the exchange listing.

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