With the Ethereum network continuing to grow and expand, ERC20 tokens have been high on investors’ priority lists. From metaverse-based tokens to DeFi innovators, the 12 best ERC20 tokens on this list seem ready to explode in 2023. In this article, you’ll discover why you should consider investing in these 12 ERC20 tokens and learn which could be your best investment yet.
What Are ERC20 Tokens?
ERC20 tokens are a type of digital asset created and hosted on the Ethereum network. ERC20 is the technical standard that outlines the rules and guidelines for creating Ethereum-based tokens. These tokens are fungible, meaning they can be traded and exchanged for one another at the same value.
ERC20 tokens have become incredibly popular due to their flexibility and versatility. They can represent various types of assets, including cryptocurrencies, stocks, and fiat currencies. Moreover, they can be programmed to execute specific functions through smart contracts, leading to some incredible projects in the Ethereum ecosystem.
ERC20 tokens have become the backbone of many decentralized applications (dApps), like decentralized exchanges (DEXes), prediction markets, play-to-earn (P2E) games, and more. One of their most notable uses is in decentralized finance (DeFi), which has led to the creation of various financial instruments and services that were previously impossible or expensive to offer on the blockchain.
Featured Coins:
Chancer (CHANCER)
Shiba Memu (SHIBA MEMU)
AltSignals (ASI)
Metacade (MCADE)
Chainlink (LINK)
MakerDAO (MKR)
Uniswap (UNI)
The Sandbox (SAND)
ApeCoin (APE)
Aave (AAVE)
Yearn Finance (YFI)
Wrapped Bitcoin (wBTC)
1. Chancer (CHANCER) — Revolutionizing the betting industry
What is Chancer?
Chancer is the world’s first blockchain-based decentralized predictive markets app. Chancer aims to revolutionize the betting and gambling industry by removing the need for a bookmaker or house entirely. Chancer is a betting facilitator that allows people to make peer-to-peer (P2P) so the odds are equal and never stacked against users. Any type of bet can be made, from a small bet among friends, to viral bets on huge events such as the Superbowl or the Oscars. Unlike traditional bookies, bets aren’t limited to just sports.
All bets and pay-outs are made in Chancer’s native token, CHANCER. Additionally, users can earn CHANCER simply by using the platform and placing bets, presenting users with a great opportunity to earn a passive income. The rewards don’t stop there; users can get discounts on bets, making it cost-efficient for frequent bettors.
Why invest in Chancer?
CHANCER has great utility as a token as it fuels Chancer’s entire platform. Given that the size of the betting and gambling industry was worth an eye-watering $64 billion last year, there’s a real chance that Chancer will disrupt the market and take a sizeable chunk of it through its democratized, decentralized platform that puts bettors first. This makes Chancer a great investment with lots of potential for both betting and crypto enthusiasts.
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2. Shiba Memu (SHIBA MEMU) — A meme coin with real utility
What is Shiba Memu?
Shiba Memu is a brand new meme coin based on the adorable Japanese Shiba Inu dog. However, this deceptively cute coin has a marketing powerhouse behind it and aims to do the work of 100+ marketing agencies in real time. It’s leveraging the power of both blockchain and AI technology to transform marketing, taking time-consuming tasks from marketers so they can focus their efforts elsewhere.
Shiba Memu learns from successful marketing strategies, writes its own PR and promotes itself across relevant forums and social networks. It will be able to generate content based on the data that its AI continually analyzes, publishing this on several online platforms. It will then monitor and analyze the success of its marketing efforts and adjust them accordingly, constantly learning and improving content in order to optimize results.
Why invest in Shiba Memu?
Shiba Memu will undoubtedly benefit from being a cute, funny meme. However, unlike other meme coins in the market which rely on initial hype and then drastically lose value because they have no long-term use, SHIBA MEMU has innate utility as it fuels the entire Shiba Memu platform. Meme fans and crypto enthusiasts looking to invest in a meme coin and see long-term returns should consider Shiba Memu.
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3. AltSignals (ASI) – AI-Trading Token Making a Splash
What is AltSignals?
AltSignals is one of the crypto market’s leading signal providers, producing over 1,500 trading calls since 2017. It’s established itself as a highly-reputed and trusted platform over the years, consistently generating 100%+ returns across many of its signals each month and earning a 4.9/5 star rating on its Trustpilot page. AltSignals has achieved this through its team of veteran traders and the AltAlgo™ algorithm, a cutting-edge tool developed in-house by its trading experts.
Now, AltSignals is taking its service to the next level with the ActualizeAI algorithm and its new token, ASI. ActualizeAI is effectively AltAlgo™ 2.0, combining the best assets of its existing algorithm with the most advanced AI technology. It’ll leverage features like machine learning, sentiment analysis, natural language processing, and predictive modeling to offer even more profit-making opportunities to its users, aiming to take AltSignals’ win rate from 64% to 80%+.
Why Invest In AltSignals?
Investing in ASI could be an excellent idea if you’re looking for a utility token that offers gains in more ways than one. ASI will be necessary to access the ActualizeAI algorithm, with investors picking up more than 50,000 tokens being granted lifetime access once it goes live. ASI investors are not only exposed to price appreciation in the platform’s native token but will also be given exclusive access to some of the industry’s best signals.
ASI holders will also be granted access to the AI Members Club, giving them further opportunities to earn. Here, members can offer feedback on the latest updates, participate in product testing, and work closely with the AltSignals development team while earning additional ASI for their efforts.
As traders earn more ASI, they’re able to access more advanced features of the ecosystem, further boosting their profit potential. For example, it may unlock exclusive presale opportunities identified by ActualizeAI’s sentiment analysis capabilities, allowing ASI holders to get in early before these presales blow up and soar in price. There’s even a 3-5 year buyback and burn plan for ASI, which will have a deflationary effect on the token’s price and promote price appreciation.
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4. Metacade (MCADE) – Transforming the Play-to-Earn Landscape
What is Metacade?
Metacade is an exciting new ERC20 token that promises to transform the P2E landscape. It’s a community hub where gamers, crypto investors, and developers can come together to explore the bubbling GameFi space. They can discuss the latest tips and tricks in dedicated sub-forums, earn MCADE tokens for sharing their thoughts on the latest titles, and even influence the direction of the industry through the Metagrant scheme.
At its core, Metacade is the unifying platform that links all blockchain-based games together, offering players a one-stop shop for all things P2E. Its goal is to create a self-sustaining, revenue-generating community that supports the very best in GameFi innovation while offering players outstanding value and helping them find their edge in P2E.
Why Invest In Metacade?
Many investors cite the Metagrant program as one of the most exciting features. Metagrants allow developers to submit game proposals to a competition. MCADE holders then vote on which games they believe deserve to win funding from the Metacade treasury, with the winner receiving financing and the community’s support.
This feature has the potential to put Metacade on the map. It not only incentivizes developers to create new games on the platform but also creates a community-driven decision-making process. This helps to ensure that the next wave of P2E titles is aligned with the interests of the gamers actually playing the titles – something that’s desperately needed in the current GameFi landscape.
It’s also worth considering the projected growth of GameFi as a whole. In early 2022, Crypto.com released a report that projected that GameFi would grow at a rate of 100% each year, 10x faster than traditional gaming, and become a $50 billion market by 2025. When a big name like Crypto.com makes a prediction like that, it’s worth paying attention. If correct, then Metacade could quickly explode as players rush to find a community to call home.
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5. Chainlink (LINK) – The Leading Decentralized Oracle for Smart Contract Enabled Tokens
What is Chainlink?
Chainlink is a decentralized oracle network that provides reliable and secure connections between smart contracts and off-chain data sources. It allows smart contracts to access data from the outside world, like financial metrics and weather reports, making it possible to create dApps that use real-world data.
The Chainlink network uses a unique decentralized node architecture that allows it to retrieve data from multiple sources, ensuring that on-chain data used by smart contracts is verifiable and accurate. Chainlink has seen high demand amongst various DeFi protocols, like Synthetix, AAVE, Compound, and dozens of others.
Why Invest In Chainlink?
One of the main reasons to invest in Chainlink is its status as the go-to oracle network for the entire blockchain industry. With over 1,700 partnerships and integrations with major players in the crypto space and beyond, including SWIFT, Google Cloud, and Associated Press (Chainlink Ecosystem), Chainlink has positioned itself as the leading oracle solution for anyone looking to bring off-chain data on-chain.
Above all else, Chainlink has consistently proven itself highly secure and reliable, becoming the industry’s most well-respected and widely used oracle network. As enterprises adopt blockchain technology, Chainlink will likely be the oracle of choice for many major players. As such, its growth potential is tremendous, which is why it’s one of the best ERC20 tokens to invest in.
6. MakerDAO (MKR) – The Most Stable DeFi Project
What is MakerDAO?
MakerDAO is a DeFi protocol that allows users to create and manage stablecoins on the Ethereum blockchain. Sometimes termed “the central bank of crypto,” Maker was one of the earliest entrants in the DeFi space and has set the technical standard for DeFi stability and security. It allows users to borrow a stablecoin, DAI, in return for other cryptocurrencies, like ETH or BTC.
Maker has stayed in the game thanks to its stringent borrower over-collateralization requirements and unique system of maintaining DAI’s peg with the US dollar. DAI is backed up by a broad range of assets, including US treasuries and USDC, and is itself over-collateralized, meaning the collateral behind DAI is worth more than the total DAI in circulation.
Why Invest In MakerDAO?
There are many reasons to invest in Maker, not least its first-mover advantage and reputation as one of the safest and most advanced DeFi protocols. Maker’s developers have continually worked to upgrade and enhance the stability of the protocol, which has helped to drive significant adoption.
This can be seen when looking at some key figures. At the peak of the crypto market in 2021, Maker’s total value locked (TVL) sat just shy of $20 billion, according to DeFiLlama. Even in today’s bear market, it still has a TVL of $7.04 billion, accounting for around 13.6% of the entire TVL in the DeFi market. Overall, MakerDAO is an exceptional DeFi project and deserves a place in any ERC20 crypto portfolio.
7. Uniswap (UNI) – The Top Decentralized Exchange
What is Uniswap?
Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain. It enables users to swap ERC20 tokens directly from their Ethereum wallets without the need for a centralized crypto exchange. Uniswap uses an automated market maker (AMM) model, which relies on smart contracts to facilitate trades based on supply and demand.
Instead of a centralized order book, Uniswap uses liquidity pools. Users can lock up their tokens in these liquidity pools for others to trade with, with liquidity providers earning a passive income through the pool’s trading fees.
Why Invest In Uniswap?
One reason to invest in Uniswap is its position as the leading decentralized exchange. Decentralized exchanges have experienced explosive growth in recent years, driven by the increasing adoption of decentralized finance (DeFi) protocols and a desire to have more control over funds. As the web and crypto trading becomes more decentralized, the demand for DEXes like Uniswap is expected to increase significantly.
Unlike centralized exchanges, users don’t need anyone’s permission to create a trading pair. This means that anyone can list their tokens, likely well before they reach centralized exchanges. Consequently, users will find thousands of tokens not yet available anywhere else on Uniswap, giving it a level of exclusivity that drives crypto investors to the platform and pushes the price of UNI tokens higher.
8. The Sandbox (SAND) – The Face of the Crypto Metaverse
What is The Sandbox?
The Sandbox is a virtual world built on the Ethereum network that allows users to create, share, and monetize their gaming experiences. At the heart of The Sandbox is LAND, parcels of digital real estate stored on the Ethereum blockchain as non-fungible tokens (NFTs). Users can purchase LAND and use the project’s native world-building tools, VoxEdit and the Game Maker, to build whatever they like and earn money from their creations.
For example, users can build advanced objects, like cars or art, and mint ASSET NFTs corresponding to these objects. They can then sell these ASSETs in The Sandbox’s marketplace for SAND tokens. Or, they can build entire games, complete with quests, enemies, and immersive storylines, and charge others a small fee to play their creation.
Why Invest In The Sandbox?
As one of the most advanced virtual world-based crypto projects out there, The Sandbox could potentially disrupt the gaming industry by providing a decentralized platform for content creation and monetization. By allowing users to create their games and sell their assets and experiences, The Sandbox empowers creators to profit from their creativity directly.
Moreover, The Sandbox’s potential has been ratified by a number of big-name partnerships. Gucci, HSBC, Snoop Dogg, The Walking Dead, and Warner Music Group have entered the metaverse using The Sandbox. In turn, this has only helped to cement The Sandbox’s reputation and offer it exposure to a broad audience. In the future, The Sandbox may be able to continue leveraging its partnerships to drive adoption and boost the value of SAND.
9. ApeCoin (APE) – Fungible Tokens Pioneer and Powering One of the Most Ambitious Metaverses Yet
What is ApeCoin?
ApeCoin is the native utility token of the Ape ecosystem – an all-encompassing world of games, events, services, and more. It was built to support the development of a decentralized web and created by Yuga Labs following the record-setting success of its flagship NFT project, Bored Ape Yacht Club.
ApeCoin also functions as the governance token of the ApeCoin DAO, a decentralized autonomous organization that enables users to determine how the project’s funds are spent and vote on proposals related to the project. Despite being one of the youngest Ethereum-based tokens on this list, ApeCoin has found use in a wide range of settings, from payments to games like Benji Bananas and Dookie Dash.
Why Invest In ApeCoin?
One of the biggest reasons to consider investing in ApeCoin is the development of Otherside, Yuga’s ambitious metaverse project. Otherside will allow players to turn their NFTs into playable characters in an immersive digital landscape. It’s being built in collaboration with Animoca Brands, The Sandbox’s parent company, and Improbable, a company specializing in metaverse and Web3 development.
Otherside itself is set on a distant planet, complete with its own lore and storyline based around its alien inhabitant, Koda. While not much is known about what the finished game will look like, players have already embarked on the “First Trip,” which saw approximately 4,600 users come together to take on a boss Koda. Now, ApeCoin investors are looking forward to the “Second Trip,” which will take place on March 25th.
10. Aave (AAVE) – A User-Friendly DeFi Pioneer
What is Aave?
Aave is a decentralized lending platform built on the Ethereum blockchain. It allows users to lend and borrow various cryptocurrencies through smart contracts without the need for intermediaries. It’s often regarded as one of the most user-friendly and accessible DeFi platforms amongst the Ethereum community.
While Aave facilitates the lending and borrowing of crypto tokens, it also pioneered flash loans. Flash loans allow traders to make and repay a loan in a single transaction without the need for collateral, meaning they can profit through arbitrage. As a result, there has been a surge in the popularity of flash loans in the DeFi ecosystem.
Why Invest In AAVE?
One of the most substantial reasons to invest in Aave is its status as one of the leading DeFi protocols. It currently sits just beneath Lido and MakerDAO with the third-highest TVL, standing at $4.84 billion at the time of writing (DeFiLlama).
Unlike many other DeFi projects, Aave is also open-source, meaning that its code is open to scrutiny from community members. This ensures that Aave functions as intended and reduces the risk of any hidden bugs being exploited – a common issue in DeFi protocols.
Being open-source also means that enterprises can easily evaluate its security, which is vital for DeFi adoption by institutions. As a result, they could turn to Aave first when considering entering the DeFi space.
11. Yearn Finance (YFI) – Optimizing Yield Farming for DeFi Investors
What is Yearn Finance?
Yearn Finance is a DeFi platform built on the Ethereum network. It’s designed to help users optimize their yield farming strategies by automatically moving different tokens between different DeFi protocols to maximize returns. The platform provides a suite of tools that allows users to deposit their crypto assets into various liquidity pools and earn interest on their deposits.
In essence, Yearn simplifies the world of DeFi and makes it easy for anyone to maximize their crypto passive income. It offers several distinct products, like APY, Earn, Zap, and Vaults. Vaults, for example, are similar to mutual funds; they use pre-programmed logic to actively invest users’ cryptocurrencies into high-yielding strategies.
Why Invest In Yearn Finance?
One of the key reasons to invest in Yearn Finance is its innovative technology. The platform has pioneered the concept of yield aggregation, which has been a game-changer for DeFi investors. By using advanced algorithms and automation, Yearn Finance is able to provide users with the highest yields across multiple DeFi protocols.
Yearn is considered one of the fastest-growing and most impressive DeFi projects that offer passive income on crypto assets. Its vision of simplifying DeFi activities like yield-farming and making it more accessible to the average investor can’t be understated. YFI will likely continue to be one of the leaders in DeFi technology for years to come.
12. Wrapped Bitcoin (wBTC) – Bitcoin But on Ethereum?
What is Wrapped Bitcoin?
Wrapped Bitcoin (wBTC) is a tokenized version of Bitcoin that’s compatible with the Ethereum blockchain. It’s an ERC20 token that’s backed by 1:1 Bitcoin reserves. Users can swap their BTC for wBTC at a 1:1 ratio, with the swapped Bitcoin being stored in a digital vault. They can then redeem their wBTC for BTC at any time.
By locking up their Bitcoin, users can mint wBTC tokens that can be used in various DeFi protocols, like lending and borrowing platforms and decentralized exchanges (DEXs), that aren’t compatible with the original Bitcoin network. Following the fairly recent Ethereum merge, which transitioned the network from proof-of-work to proof-of-stake, users are able to earn a passive income on their wBTC by staking it on the Ethereum network.
Why Invest In Wrapped Bitcoin?
A key reason to invest in Wrapped Bitcoin is that it opens up a world of opportunity previously unavailable if you simply hold Bitcoin. Besides the small fee required to convert BTC to wBTC, there’s little downside to owning some wBTC since it’s pegged 1:1 with Bitcoin. It means that Bitcoin investors earn interest on their holdings through with DeFi, borrowing, lending, or swapping their wBTC for other Ethereum-based tokens using platforms like MakerDAO and Uniswap.
Why Invest in ER20 Coins?
ERC20 tokens are used in a wide range of settings and offer a wealth of benefits, making them an excellent investment choice. Their use of smart contracts means they’re incredibly versatile, opening up new opportunities for enterprises and individuals alike. ERC20 tokens are highly scalable, meaning they typically have lower transaction fees than coins on other networks, like Bitcoin.
ERC20 tokens also offer a high level of security, thanks to the strength of the Ethereum network, and offer compatibility with other Ethereum-based tokens. Services like MetaMask, for example, make storing and using ERC20 tokens easy. If each token an investor held were on a different blockchain, then many dApps and DeFi protocols wouldn’t function as they do today.
It’s because of ERC20 tokens that investors can earn passive income on their crypto assets. Lending, borrowing, and trading crypto in a decentralized manner are all options available to ERC20 investors. Staking ERC20 tokens is also a popular way to earn rewards and participate in network governance.
Network governance is an added bonus of ERC20 tokens for many investors. By staking their tokens, users can earn voting rights and directly impact the future of the project they’re invested in. While decentralized autonomous organizations (DAOs) aren’t perfect, they offer a level of decentralized democracy not seen before in the financial world.
These expanded use cases make ERC20 tokens a more dynamic and flexible investment option that continues to attract more investors each day. With their versatility, security, and ability to generate passive income and participate in network governance, ERC20 tokens present a compelling investment opportunity for anyone looking to diversify their crypto portfolio.
What is the Best ERC20 Crypto to Buy Right Now?
Overall, the 12 tokens on this list all have outstanding potential to offer significant returns (besides Tether). Metaverse-based ERC20 tokens, like ApeCoin and The Sandbox, will likely outperform as metaverse adoption grows. At the same time, projects like MakerDAO, Aave, and Yearn Finance have paved the way for DeFi innovation and are expected to continue doing so in the future.
In terms of investment opportunity, Chancer, Shiba Memu and AltSignals can’t be beaten. The projects are still currently in their infancy, yet have attracted attraction from investors across the globe during their ongoing presales. Each has a strong community focus, which may help to drive growth and adoption in the long term.
If you’re wondering which out this list to go for, check these three out first. Their presales aren’t expected to hang around for long, by which time it could be too late to become one of the earliest investors in these three remarkable projects.
FAQs
Is ERC20 the same as ETH?
No, ERC20 is not the same as ETH. ETH is the native cryptocurrency of the Ethereum network, while ERC20 is a standard for creating tokens on the Ethereum blockchain.
How many ERC20 tokens are there?
According to Etherscan, there are 1,195 ERC20 token contracts. This number continues to grow each week as more projects launch on the Ethereum network.
What does ERC20 mean?
ERC20 stands for Ethereum Request for Comment 20, which is a technical standard for creating tokens on the Ethereum network. It outlines the rules and guidelines developers must follow to ensure their tokens are compatible with other ERC20 tokens.
Is ERC20 only for the Ethereum Blockchain?
Yes, ERC20 tokens can only be created and used on the Ethereum blockchain.
Is XRP an ERC20 token?
No, XRP is not an ERC20 token. It is the native cryptocurrency of the Ripple network and has its own technical standards for creating and managing tokens.
Is BEP20 the same as ERC20?
No, BEP20 is not the same as ERC20. BEP20 is a token standard used on the Binance Smart Chain, while ERC20 is used on the Ethereum network. There are parallels, however. Binance Coin performs a similar role to Ethereum, while Binance USD (BUSD) can be thought of as Binance Smart Chain’s Tether.
Is DOGE an ERC20 token coin?
No, DOGE is not an ERC20 token. While many meme coins exist on the Ethereum network, DOGE runs on Litecoin’s chain and has no relation to the Ethereum ecosystem.
Are ERC20 tokens a good investment?
As with all cryptocurrencies, ERC20 tokens are highly risky. It’s important to do your own research and assess the potential risks and rewards before investing in ERC20 tokens. However, their versatility makes them a promising investment opportunity for those who believe in the future of the Ethereum network and the power of crypto as a whole.
Disclaimer: Insights provided by crypto industry players and is not a part of the editorial content of BanklessTimes.
