The 3 Biggest Ethereum Tokens

Because Ethereum is the second largest cryptocurrency platform, there are a lot of tokens that run on its network. Some of those tokens have grown quite popular, and valuable in a myriad of ways. Some would even say these tokens are vital to the entire cryptocurrency industry in one way or another. Three of the biggest Ethereum tokens right now:

• Tether (USDT)
• USD Coin (USDC)
• Lido Staked Ether (STETH)

These tokens do a lot of work for the Ethereum blockchain, its DApps, and the overall crypto ecosystem. You’ll find these tokens have become useful for things like making payments, investing, and a variety of other financial activities. Here’s a deeper look at these three coins and what makes them so popular.

1. Tether (USDT)

Tether (USDT) holds wide recognition as a stablecoin. The token sits high on the list of cryptocurrencies by market cap as third behind Bitcoin and Ethereum, which is quite remarkable.

As a stablecoin, USDT strives to keep its value pegged to the US dollar. So, at any given time, a ~1:1 parity will exist between 1 USDT and 1 US dollar. That price stability offsets the volatility of the cryptocurrency market. This makes it a reliable option for trading and purchasing as well as an incredibly liquid option.

Just about every exchange accepts USDT and some even require it. While traditionally an ERC-20 token, and a centralized stablecoin, you can find other forms of Tether on blockchains beyond Ethereum’s.

2. USD Coin (USDC)

USD Coin (USDC), another popular Ethereum token, also represents a known stablecoin. Similarly, USD Coin has parity with the US dollar, although it’s backed by a different set of assets than USDT. One thing that separates USD Coin from USDT is that USD Coin offers stricter compliance with regulations as well as a high level of transparency through routine auditing.

The token is a decentralized one which also makes it popular because it adds more scrutiny. This all adds a level of trust to the token that allows those who use it to make transactions without worry. Also, USDC tends to move just as quickly as USDT and typically comes with lower costs for transactions.

While it’s an ERC-20 token, USDC runs on other blockchains. If you want to accept cryptocurrency payments, USDC makes an ideal choice. Equally, if you wanted to store your value in a cryptocurrency, USDC makes a lot of sense for that purpose.

3. Lido Staked Ether (STETH)

Lido Staked Ether (STETH) doesn’t work quite like how other tokens work. This token isn’t about price stability as it’s more about presenting a value proposition on the Ethereum 2.0 network as a proof of stake (PoS) endeavor.

You can use STETH to earn rewards on the Ethereum 2.0 network as the token represents staked Ether. So, you can access the value of your Ether without waiting out the withdrawal process. You will also receive a chance to join in on the network’s governance.

The Lido protocol pools all the funds, distributes all the rewards, and allows you to use your STETH tokens as liquid assets in other DeFi applications. You can participate in the transition from the proof of work (PoW) methods of Ethereum to the new PoS methods of Ethereum 2.0 without losing liquidity.

This has all made STETH an extremely attractive token and one that’s easy to obtain since there are no minimum staking requirements to start. You can participate in the Ethereum network without having to purchase ETH directly, and that’s a game-changer for several reasons.

All these coins have wide acceptance, a ton of use cases, and an incredible amount of inherent stability. For these reasons and more, they’re three of the biggest Ethereum tokens out there.