Native Protocol Asset

Definition ∞ A native protocol asset is the primary cryptocurrency or token that powers a specific blockchain network. This asset typically serves multiple functions within its native ecosystem, including paying transaction fees, securing the network through staking or mining, and participating in governance. It is fundamental to the protocol’s economic security and operational integrity. Examples include Ether for Ethereum or Bitcoin for the Bitcoin network.
Context ∞ News often analyzes the performance and utility of native protocol assets as indicators of a blockchain’s health and adoption. Discussions frequently cover tokenomics updates, staking yields, and regulatory classifications, all of which directly impact the value and role of these foundational digital assets.