The Ethereum (ETH) blockchain is one of the largest cryptocurrency ecosystems on the market, due to its smart contract capabilities, DApp programming resources, and easy token launch features. Although various blockchains are providing similar features to the Ethereum network, such as Polygon (MATIC), Solana (SOL), Avalanche (AVAX), and Cardano (ADA), Ethereum remains by far the most popular network for crypto launches.
This is because it’s so easy to launch a token on the Ethereum blockchain and anyone with a bit of programming knowledge can do it. After all, the resources for launching Ethereum tokens are open-source and available to all.
Let’s take a look at ERC20 tokens and find out which are the most popular Ethereum tokens on the market.
Ethereum enables developer teams to launch their cryptocurrencies on top of the ETH blockchain through smart contract functionalities and token standards. A token standard is a set of rules created by Ethereum developers. The most popular Ethereum token standard for fungible tokens is the ERC20 token standard.
It’s far easier for developers to just launch crypto on the ETH network than to create their own blockchain infrastructure which requires extensive programming and a lot of financial assets. That’s why the fact that Ethereum enables users to launch ERC20 tokens free of charge is a great contribution to making crypto development accessible to anyone with some programming knowledge. Many popular cryptocurrencies with multi-billion dollar market caps are ERC20 tokens.
These are some of the most popular cryptos built on the ETH blockchain as ERC20 tokens.
Chainlink (LINK) is a decentralized blockchain oracle service whose goal is to provide users with advanced smart contract functionalities by enabling more versatile connectivity between smart contracts and the blockchain. LINK uses oracles, which are similar to blockchain network nodes. These oracles are responsible for validating transactions and processing data through the network. Oracles enable smart contracts to validate real-world events and integrate data within the blockchain. For example, Chainlink has secured a partnership with Accuweather, which enables LINK oracles to integrate weather data with the blockchain, thus providing real-time weather updates through the LINK network.
Dai (DAI) is one of the most popular ERC20 tokens on the market. It’s a stablecoin based on the Ethereum network and it works based on advanced computer algorithms that keep the value of Dai coins pegged to the US dollar. One DAI is always worth one USD. The algorithm behind DAI carefully manages multiple crypto treasuries and accordingly redistributes coins, making sales and purchases, in order to keep the value of DAI tied to the US dollar. Stablecoins are very important for the whole crypto market because they provide traders with the ability to keep a portion of their crypto portfolio immune to market volatility.
Basic Attention Token (BAT)
Basic Attention Token (BAT) is an ERC20 token that has fascinating real-world applications, due to its partnership with the privacy-focused Brave browser. The Brave browser blocks all types of invasive ads and pop-ups, enabling users to browse the web unbothered and they can also earn BAT rewards through the Brave Rewards program. Brave Rewards are awarded to users for watching approved ads on the Brave browser. You can choose how many ads you want to watch per hour and get paid in BAT tokens for your attention. Users can also tip their favorite creators and websites with BAT tokens.
Shiba Inu (SHIB)
Shiba Inu (SHIB) is one of the top trending ERC20 tokens on the market. It’s a meme coin, just like Dogecoin (DOGE) and it’s often referred to as “Dogecoin killer.” The token was launched on the Ethereum blockchain in 2020 and it quickly managed to attract a substantial number of users. While SHIB doesn’t have any real-world utilities, it’s a clear example of the unpredictability of the crypto market, where even meme coins can sometimes achieve huge market caps and popularity.
Uniswap is one of the largest decentralized exchange platforms on the Ethereum blockchain and UNI is their native ERC20 token. You can find almost any ERC20 token on Uniswap and you can buy it with UNI tokens, or other ERC20 cryptos. The platform utilizes Ethereum smart contracts to make sure no one can take advantage of another party in an exchange deal and it’s known for providing users with reliable services. You can also earn nice staking rewards by staking UNI tokens on the platform and providing it with liquidity.
Aave is a top-quality DeFi platform that’s focused on lending crypto. It’s one of the top decentralized apps on the Ethereum blockchain in terms of market cap and staked assets, which are measured in billions of USD. AAVE is the native ERC20 token of the platform and you can earn high annual percentage yields for lending crypto on Aave. The platform is a great choice for borrowing assets, but anyone who wants to borrow some crypto needs to provide some collateral that ensures the debt will be paid. AAVE is a great illustration of advanced DeFi utilities on the Ethereum blockchain.
Wrapped Bitcoin (WBTC)
Wrapped Bitcoin (WBTC) is Bitcoin on the Ethereum blockchain. The value of each WBTC is tied to the original Bitcoin. Additionally, WBTC has smart contract functionalities because it’s an ERC20 token, which means that it can be used for much more than just digital cash transactions like the classic Bitcoin. Users can take loans, stake, and earn interest on Ethereum DApps while using this ETH-based version of Bitcoin.
The Ethereum ecosystem is huge, thanks to thousands of ERC20 tokens, decentralized apps and DeFi platforms that use Ethereum as their native network. Ethereum continues to inspire countless developer teams to create and launch their projects on one of the most versatile and constantly developing crypto networks in the world.