Core Utility

Definition ∞ Core utility refers to the fundamental and primary function or purpose that a digital asset, protocol, or blockchain network provides to its users or the broader ecosystem. It represents the essential value proposition, distinguishing it from speculative or secondary uses. This intrinsic function drives genuine demand and long-term adoption, supporting the system’s operational viability. A strong core utility is a key indicator of a project’s foundational strength.
Context ∞ The discussion around core utility frequently arises when evaluating the sustainability and genuine value of new cryptocurrency projects, particularly in contrast to assets driven primarily by market sentiment. Investors and analysts scrutinize whether a token or protocol solves a real-world problem or offers a distinct advantage. Future trends suggest a greater emphasis on projects demonstrating clear, verifiable utility beyond mere transactional capability, fostering a more mature digital asset landscape.