Top cryptocurrencies on Ethereum for 2023
Top cryptocurrencies on Ethereum for 2023: ERC 20 Token to buy
- LDO (Lido)
- UNI (Uniswap)
- MATIC (Polygon)
- CRV (Curve)
- MKR (Maker)
Ethereum has no doubt the biggest ecosystem among all blockchain networks. Here are the top 5 projects on Ethereum to look after in 2023.
What is ERC 20 Token?
ERC-20 is a technical standard for smart contracts on the Ethereum blockchain for creating tokens. It was proposed in 2015 and became widely used in 2017 with the boom of initial coin offerings (ICOs). ERC stands for Ethereum Request for Comment, and 20 is the number assigned to this specific proposal.
ERC-20 defines a set of rules that all tokens on the Ethereum blockchain must follow, which makes them compatible with a wide range of wallets, exchanges, and other smart contract-enabled platforms. These rules include, but are not limited to:
- How tokens are transferred between addresses
- How data within a token is accessed and stored
- How new tokens are created
By following these rules, ERC-20 tokens can be easily exchanged for other tokens or cryptocurrencies, and can also be integrated into decentralized applications (dapps) built on the Ethereum blockchain.
It's important to mention that, ERC-20 is not the only standard for smart contract-based tokens on Ethereum, now there are other standards like ERC-721, ERC-1155, and so on, and they all have different characteristics that make them useful in different contexts.
Overall, ERC-20 is a widely-used standard that has helped to increase the interoperability and functionality of tokens on the Ethereum blockchain, making it easier for developers to create and deploy new tokens, and for users to access and trade them.
1) LDO (Lido)
Lido is a liquid staking solution for Ethereum. Lido lets users stake their ETH - with no minimum deposits or maintaining of infrastructure - whilst participating in on-chain activities, e.g. lending, to compound returns.
LDO is the native utility token that is used for granting governance rights in the Lido DAO, managing fee parameters and distribution, as well as governing the addition and removal of Lido node operators.
2) UNI (Uniswap)
The Uniswap DAO has over 310,000 members that can vote over the $1.6B treasury, governance, and roadmap of the DEX by holding UNI governance token which is available for trading on major exchanges against other cryptocurrencies, stablecoins, fiat currencies, and more.
3) MATIC (Polygon)
Polygon proposed the first infrastructure for Ethereum scaling. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.
MATIC, the native token of Polygon, is an ERC-20 token running on the Ethereum blockchain. It is used to pay for gas on Polygon and as an ecosystem currency of the Polygon network. The transaction fees on Polygon sidechains are also paid in MATIC tokens.
4) CRV (Curve)
Curve (CRV) launched in August 2020, along with the Curve DAO. Its purpose is to function as a governance medium, incentive structure, and fee payment method, along with a long-term earnings method for liquidity providers.
CRV supply is 3.03 billion tokens, the majority of which (62%) are distributed to liquidity providers. The remainder is divided as follows: 30% to shareholders, 3% to employees, and 5% to a community reserve.
5) MKR (Maker)
Maker (MKR) is a governance token of the MakerDAO and Maker Protocol — respectively a decentralized organization and a software platform, both based on the Ethereum blockchain. It allows users to issue and manage the DAI stablecoin.
MKR gives its holders voting rights over the development of Maker Protocol and is expected to appreciate in value in accordance with the success of DAI.
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