Asset Utility

Definition ∞ Asset utility refers to the practical functions or applications a digital asset possesses beyond its speculative value. It signifies what a token or coin can actually do within a specific ecosystem or protocol. This utility often dictates the asset’s intrinsic worth and its demand.
Context ∞ Crypto news frequently analyzes asset utility to gauge long-term viability and differentiate between speculative assets and those with genuine application. Regulatory bodies increasingly scrutinize an asset’s utility to classify it as a security or a commodity. Projects with clear, demonstrable utility tend to gain more favorable market reception and regulatory clarity.