Crypto Utility

Definition ∞ Crypto utility refers to the practical use or application of a cryptocurrency within its specific ecosystem or beyond. This utility can manifest in various forms, such as granting access to services, enabling governance rights, or serving as a medium of exchange for specific digital goods or platforms. It is a key determinant of a digital asset’s intrinsic value beyond speculative interest.
Context ∞ The current discourse on crypto utility often focuses on the functional applications of tokens within decentralized finance (DeFi) protocols, blockchain-based gaming, and decentralized autonomous organizations (DAOs). Analysts are evaluating the sustainability of these use cases and their capacity to drive genuine demand for the associated tokens. Developments in layer-2 scaling solutions and interoperability are also critical for expanding the practical utility of various digital assets.