Utility tokens enable the functioning of blockchain networks by facilitating transactions, rewarding participants, and securing decentralized protocols. They drive the adoption of dApps by creating incentives for users and developers. Many DeFi platforms, NFT marketplaces, and blockchain ecosystems rely on utility tokens for governance, staking, and access to exclusive features. While not classified as securities, regulatory scrutiny over utility tokens continues to evolve. Research the utility and demand of a token before purchasing to assess its long-term viability.
