Utility Tokens Deserve More Attention from Crypto Investors in 2022

Bearish conditions that lasted from the New Year until recently in the cryptocurrency markets are being called part of a widespread correction. Cryptocurrency market analysts believe that this latest correction was to be expected after the Santa Claus rally of 2021, but there are also opinions that suggest the digital currencies market is coming to full maturity.

When you look at what has been happening in the cryptocurrency markets over the last couple of years, you will find that traders and investors are easing into the idea of holding tokens as if they were equity shares. When an investor acquires utility tokens issued by the likes of the Render Network, Yield Guild, or NFTX, her mind is not set on using the tokens as currencies. Utility tokens are not like Bitcoin, nor do they try to be; nonetheless, they represent the success and value of the blockchain projects that issued them. This explains why utility tokens are beginning to rise from the ashes of the latest market correction.

When the price of utility tokens starts to climb back from the market correction, we could see these utility tokens begin to be seen as a store of value, and therefore valuable. That would mark a shift in what has been seen as the cryptocurrency market moving towards a world of exchange tokens. Exchange tokens are tokens that try to represent value by connecting the value of the token to the value of the network on which the token is based.

Utility tokens are not used for day to day transactions like exchange tokens, and yet some cryptocurrencies based on utility tokens do not have an active open source ecosystem. As the market becomes mature and people invest in utility tokens, a whole new ecosystem could begin to blossom.

Crypto-friendly regulations and taxation structures could also provide a boost to the success of the industry. According to BitMEX’s Executive Chairman Arthur Hayes, this new economy is the biggest shift that has taken place since the internet revolution. Hayes sees the cryptocurrency world as a big shift, which has many people wondering if it will make a huge impact.