Productive Utility

Definition ∞ Productive utility refers to the intrinsic value or functional purpose a digital asset provides beyond mere speculative trading. This utility contributes to real-world applications or essential network operations. Examples include staking, governance participation, or payment for network services.
Context ∞ The assessment of digital asset valuations increasingly considers the presence and degree of productive utility as a fundamental factor for long-term sustainability. Assets demonstrating tangible utility are often differentiated from purely speculative ventures, influencing investor perception and market stability.