Definition ∞ Utility token value is derived from the ability of a digital token to grant access to a specific product, service, or feature within a particular blockchain ecosystem. Its worth is tied to its functional use case rather than speculative investment or ownership rights. Holders typically use these tokens to pay for network fees, participate in governance, or access decentralized applications. The value often appreciates with increased platform adoption and utility.
Context ∞ In crypto news, discussions about utility token value frequently distinguish them from security tokens, which often face different regulatory scrutiny. Reports often analyze how a token’s intrinsic utility drives demand and influences its market price. The growth of decentralized applications (dApps) and their associated tokens highlights the importance of real-world use cases. The ongoing challenge for many projects is to demonstrate tangible utility that supports sustained token value.
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