10 Important Projects And Tokens On The Ethereum Ecosystem
Main Takeaways:Â
Ethereum is a community-run technology powering the Ethereum cryptocurrency and thousands of decentralized applications (DApps).Â
With the help of features such as smart contracts, Ethereum provides a variety of innovative applications in finance, gaming, and more.
You can purchase Ethereum ecosystem tokens on Binance in two simple steps.Â
The Ethereum ecosystem is filled with applications that add value to a myriad of industries.
Currently, Ethereum is the second-largest crypto after Bitcoin, and it is more than just digital money. Ethereum has expanded on Bitcoinâs use cases by building a global network that secures an ecosystem of decentralized applications (DApps) from decentralized finance (DeFi), NFTs, and more. Keep on reading to learn more about how Ethereum works, the top 10 projects driving the Ethereum ecosystem, and how you can purchase Ethereum ecosystem tokens on Binance. Â
Home to a wide range of cryptocurrencies, Binance is the worldâs largest cryptocurrency exchange by trading volume and user base. Register for an account now to access popular Ethereum ecosystem tokens today!
What is Ethereum?
Ethereum is a decentralized open-source blockchain network launched in 2015 and powered by its native cryptocurrency, ETH. Computer science student Vitalik Buterin developed the Ethereum blockchain, along with a team of co-founders, after realizing the potential capabilities of the open-source Bitcoin code beyond the function of digital payments. Through code development, Ethereum compliments the original vision of Bitcoin, providing a blockchain capable of running autonomous smart contracts, with the facility for decentralized application (DApp) developers to build on Ethereum.Â
The innovative architecture of the blockchain allows many independent crypto development projects to build, which gave rise to the birth of DeFi (decentralized finance), NFTs, GameFi, and the Metaverse. The sheer wealth of applications Ethereum offers the industry has seen it become the second-largest cryptocurrency by market cap.Â
Let's take a look at the major use cases of Ethereum in the finance, art, gaming, and technology industries:
Decentralized Finance
The decentralized finance (DeFi) space has exploded over the last few years. DeFi disrupts the traditional financial world through its ability to offer a range of financial products â usually with far better rates and terms than its conventional counterpart â via peer-to-peer (directly from one party to another) blockchain technology. Lending, borrowing, investment opportunities, interest-earning APY offers, insurance, and payment services are all DeFi products available to users predominantly on the Ethereum blockchain via DeFi DApps. These services are available completely free from third parties, providing an accessible, democratic, permissionless financial system. Popular DeFi platforms include Aave and Uniswap.Â
Want to learn more about the DeFi space and how to invest in it? Check out our piece on How To Invest In The DeFi Space And The Top 10 Defi Coins.
Art and collectibles
NFTs are another addition to the Ethereum blockchain that has surged in popularity over the last two years. Although NFTs were minted on Ethereum as far back as 2017, they truly hit the public consciousness relatively recently. NFTs have revolutionized the art world, providing the very thing that has always been held so crucial - provenance. Prominent NFT collections include CryptoKitties, CryptoPunks, and Bored Ape Yacht Club. Although some NFT marketplaces have launched on alternative blockchains, Ethereum continues to house some of the largest globally, including OpenSea and SuperRare. Traditional auction houses have also realized the value of the NFT market, with both Sotheby's and Christie's holding several NFT sales, with the latter successfully selling a single NFT work by the artist Beeple for $69 million in 2021.Â
Interested in learning about the NFT tokens powering various projects? Learn about the 5 Most Popular NFT Coins & How to Buy Them.
Gaming
The gaming sector is becoming an area of the crypto space that is increasingly realizing the potential of blockchain technology, especially on Ethereum. NFTs have allowed proof-of-ownership to support many areas of commerce, and within GameFi, NFTs are turning the ownership of in-game utilities, items, and rewards into assets. Games such as Axie Infinity and Sandbox have contributed to the advancement of NFT and crypto-powered gameplay, allowing gamers to earn digital assets that can be traded or sold. Digital land sales, in-game celebrity concerts, and limited edition NFT drops all continue to excite the play-to-earn space.
Want to get involved in GameFi? Buy GameFi tokens on Binance to get started.Â
Technology
Ethereum's decentralized, smart contract-governed blockchain revolutionized the possibilities of cryptocurrency technology. Ethereum's distributed code, and tamper-proof smart contracts allow developers to set parameters and predefined rules, from the transfer of value to task execution. Unlike Bitcoin's first-generation blockchain, with security and decentralized transaction verification at its core, Ethereum's code empowers developers to build customized DApps serving various sectors. Like Bitcoin, however, Ethereum currently runs on a Proof-of-Work (PoW) algorithm. The difference with Ethereum is the introduction of 'Gas Fees.' Gas fees deter users from processing non-essential transactions when the network is busy to avoid the higher prices. With the advent of a network merge from a Proof-of-Work to a Proof-of-Stake (PoS) model on the horizon, the highly anticipated upgrade promises to reduce gas fees while increasing transaction processing speed.
10 Important Projects And Tokens On The Ethereum Ecosystem
Ethereum ecosystem tokens have a variety of utilities in different kinds of DApps. Below, we've listed the top 10 Ethereum ecosystem tokens available on Binance. The selection of 10 was based on the market cap of projects across different categories, and they are not ranked in any specific order.
UniswapÂ
UNI is the native governance token of Uniswap, an Ethereum-based decentralized crypto exchange. Users can trade Ethereum tokens on Uniswap without relying on an intermediary to hold their funds. The platform uses a new trading model called an automated liquidity protocol.Â
Anyone can supply tokens to liquidity pools, trade tokens, or even create and list their own tokens using the ERC-20 protocol. By giving tokens to the liquidity pools, users can earn rewards while enabling peer-to-peer trading.Â
Uniswap (UNI) is valued at a price of $5.31 and $ 3.82B market cap as of 20 May 2022.
MakerDAO
MakerDAO is an Ethereum-based peer-to-peer organization that lets people lend and borrow crypto. Users can borrow by depositing Ethereum-based tokens such as UNI, YFI or BTC into the protocol, creating a collateralized debt position for the amount against which they wish to borrow. MakerDAO processes loans in DAI stablecoins, and when it's time to repay, the loan amount must be in DAI, while any interest needs to be repaid in the governance and utility token MKR.Â
Unlike stablecoins pegged to the U.S. dollar, DAI holds its value by overcollateralization through the MakerDAO protocol. For example, the value of Ethereum-based assets locked as collateral is always more significant than the DAI token value borrowers obtain. This maintains the ability to hold DAI in line with a $1 token value. Even in the event of a large market downtrend, there is enough value in reserves to maintain the stablecoin value.Â
MakerDAO (DAI) is valued at a price of $ 1.65 and $ 117.10M market cap as of 20 May 2022.
Aave
Aave is an open-sourced lending protocol on the Ethereum blockchain. Lenders can contribute various Ethereum-based assets into liquidity pools to earn rewards, while borrowers can place approved assets up for collateral to borrow against.Â
Moreover, interest rates on the Aave platform are based on the utilization rate of the liquidity pool in question. And, lenders have the chance to earn relatively low-risk, passive income from interest paid on loans without having to engage with a third party. AAVE is the native governance token of the Aave ecosystem, and token holders can vote on the direction of the protocol.
AAVE (AAVE) is valued at a price of $93.12 and $1.28B market cap as of 20 May 2022.
1INCH
1INCH is the native token of the decentralized exchange (DEX) 1inch. The Ethereum-based DEX protocol aims to offer its users the best rates by aggregating the best cryptocurrency rates across all DEXs. Like other DEXs, 1inch lets users transact tokens without a third party.Â
1INCH (INCH) is valued at a price of $0.91 and $381.50M market cap as of 20 May 2022.
Curve Finance
Curve Finance is a DEX and automated market maker (AMM) platform that offers an efficient way to exchange tokens while maintaining low fees and slippage. Unlike other DEXs, Curve Finance is specifically designed for swapping stablecoins.Â
Users can use its native CRV token as a governance token to participate in the network's decision-making process. Â
Curve Finance (CRV) is valued at a price of $1.34 and $616.35M million market cap as of 20 May 2022.
The Sandbox
SAND is the native token and medium of exchange in The Sandbox ecosystem. Users can use SAND to purchase land and build in-game assets or list them on The Sandbox Marketplace to monetize their gaming experiences. SAND holders can also participate in governance decisions and stake SAND tokens to earn in-game rewards.
The Sandbox (SAND) is valued at a price of $1.30 and $1.60B market cap as of 20 May 2022.
Decentraland
Decentraland is a virtual reality real estate platform that lets players create and monetize virtual structures and experiences. Creators can use the platform's native token MANA to buy digital assets such as LAND NFTs and avatars on Decentraland marketplace.Â
Decentraland (MANA) is valued at a price of $1.09 and $2.03B market cap as of 20 May 2022.
Chromia
Chromia is a blockchain platform that provides developers the tools to create secure DApps by combining relational databases with blockchain technology. CHR is the standard currency within the Chromia ecosystem, and users can use CHR to pay fees within DApps.
Chromia (CHR), is valued at a price of $0.21 and $124.64M market cap as of 20 May 2022.
Chainlink
Chainlink is a decentralized network that securely translates data from the real world to smart contracts on the blockchain and back via oracle software. Users can use Chainlink's native tokens, LINK, to pay for services on the network.
Chainlink (LINK), is valued at a price of $7.10 and $3.32B market cap as of 20 May 2022.
Axie InfinityÂ
Axie Infinity is a play-to-earn NFT game that runs on the Ethereum blockchain. Players can collect NFTs of cute creatures called Axies and pit them against each other in battles. Moreover, players can use the gameâs native Ethereum-based tokens, AXS and SLP, to play and stake the tokens to claim rewards. AXS holders can also participate in key governance votes in the Axie Universe.Â
Axie Infinity (AXS) is valued at a price of $21.32 and $1.30B market cap as of 20 May 2022.
Disclaimer: This list does not constitute a recommendation or endorsement by Binance to buy or sell any currency. All prices listed are based on the opening price on 20 May on Binance exchange.
How To Buy Ethereum Ecosystem Tokens on Binance In 2 Steps
Considering adding Ethereum ecosystem tokens to your trading portfolio? Binance offers low fees and a range of payment options for hassle-free transactions.Â
Hereâs how you can buy Ethereum ecosystem tokens or other cryptocurrencies in two simple steps:
Step 1: Make a fiat deposit via an e-wallet transfer or bank transfer on Binance. Check the available fiat channels for your preferred currencies. For more information check out our in-depth guide on How to Deposit USD via SWIFT.
Optional: Convert your fiat currency to BUSD or USDT so you can trade a greater variety of tokens.
Step 2: Buy the Ethereum ecosystem tokens of your choice through a spot wallet purchase or directly with credit/debit card.
Conclusion
The Ethereum network plays an essential role in the rise of innovative technology in the blockchain space, especially in ecosystems where DApps are prominent. As more projects and users enter the industry, the Ethereum ecosystem will continue to grow. Â
As always, remember to thoroughly DYOR before investing in the tokens of your preference.
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