General

What Are Web3 Tokens?

The world of cryptocurrency and blockchain technology is developing with new features and notable among them is web3.

Web3 which is also stylized as web 3.0 is seen as the internet’s next phase. Although it is still in its developmental stage, elements of it such as NFT, DeFi & play-to-earn gaming have attracted attention.

Blockchain companies are also creating web3 tokens which are listed among the top cryptocurrencies today.

In this post, we’ll look at the top web3 tokens by blockchain companies out there. Before then, let’s learn more about web3.

What is Web3?

Web3 is an idea of new iteration of the World Wide Web (www) based on blockchain technology. It incorporates concept like decentralization and token-based economics. It is also an upgrade of web2.

Some of the likely advantages of web3 are data security, scalability, and privacy for users to combat the influence of large technology companies.

Despite its interesting features, questions has been raised about web3 by some industry experts. This include a loss of privacy due to more expansive data collection, potential for low moderation and the proliferation of harmful content, etc.

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Web3 tokens

What are Web3 Tokens?

Web3 or Web 3.0 is called the next phase of the internet, which is expected to be decentralized and powered by cryptocurrency-based economies.

Web3 elements include decentralized finance (DeFi), non-fungible tokens (NFTs) and play-to-earn gaming, among others.

Some of the top web3 tokens are also listed in the crypto market by CoinMarketCap.

Top 5 Web3 Tokens in 2022

As of 9th of June 2022, the top ranked web3 tokens are Polkadot (DOT), Chainlink (LINK), Filecoin (FIL), Theta Network (THETA) & Helium (HNT). These web3 tokens are discussed below in order of their ranks.

1. Polkadot (DOT)

Blockchain platform, Polkadot top the list of web3 crypto coins compiled by Coinmarketcap along with its native coin, DOT.

Polkadot is a layer-zero platform unlike Ethereum which is known as layer 1. Developers can build L1 platforms on the Polkadot network called parachains.

These parachains have the freedom to operate independently. Polkadot gives parachains shared security and interoperability. Its native coin, DOT, is used for governance and to participate in parachain slot auctions.

As at the time of this writing, DOT is the 11th biggest cryptocurrency according to CoinMarketCap. The price of DOT today is  is $9.30 USD with a 24-hour trading volume of $375,190,763 USD.

DOT has a live market cap of $9,181,888,703 USD. It has a circulating supply of 987,579,315 DOT coins.

2. Chainlink (LINK)

Chainlink is the 2nd ranked web3 token according to CoinMarketCap. It is a network of decentralised oracles that relay data to smart contracts. This enables contract execution based on inputs and outputs from the real world.

Chainlink is known as market leader in the blockchain oracle sector. Oracle networks like Chainlink are crucial to the functionality of Web3, which is structured and maintained by pre-written codes and smart contracts.

On Chainlink, users can form decentralised oracle networks (DONs) that provide data to and from existing blockchains, and work to guarantee data accuracy.

It’s native utility token is trades by the symbol LINK. Today, Chainlink is the 20th biggest cryptocurrency according to CoinMarketCap listing. The price of LINK today is $9.31 USD with a 24-hour trading volume of $882,440,532 USD.

LINK has a live market cap of $4,347,500,370 USD. It has a circulating supply of 467,009,550 LINK coins and a max. supply of 1,000,000,000 LINK coins.

3. Filecoin (FIL)

Filecoin is a decentralized storage system that aims to “store humanity’s most important information.” Filecoin was launched in 2017 where $205 million was raised in its initial coin offering (ICO). It trades by the symbol FIL.

Filecoin is open protocol and backed by a blockchain that records commitments made by the network’s participants. Transactions are made using FIL, the blockchain’s native currency.

The project was first described back in 2014 as an incentive layer for the Interplanetary File System (IPFS), a peer-to-peer storage network. It was founded by Juan Benet, an American Computer Scientist who studied at Stanford University.

FIL is ranked 39th among over 10, 000 crypto assets listed by CoinMarketCap. Today, FIL sells at $7.31 USD with a 24-hour trading volume of $227,052,118 USD.

The live market cap of FIL is $1,579,341,904 USD. It has a circulating supply of 216,036,844 FIL coins.

4. Theta Network (THETA)

Theta Network is the 4th biggest web3 token in the crypto space today. Theta Network is a media and entertainment-focused blockchain that aims to reduce content delivery network costs for the online video industry. It rewards end-users for sharing their storage or bandwidth on any device.

One of the platform’s potential use cases would be a web3 equivalent of a streaming business like Netflix (NFLX). It’ll leverage on Theta Network’s solutions to lower costs of video encoding, storage and delivery to multiple devices.

Theta Network consists of two systems called the Theta Blockchain & Theta Edge Network. The network also has two tokens. Theta Token (THETA) is the governance token. Theta Fuel (TFUEL) is the operational token used to pay for on-chain operations.

As of today, Theta Network ranks in number 41 among thousands of crypto assets. The price of THETA is $1.43 USD with a 24-hour trading volume of $180,053,805 USD.

THETA has a live market cap of $1,429,269,961 USD. It also has a circulating supply of 1,000,000,000 THETA coins and a max. supply of 1,000,000,000 THETA coins.

5. Helium (HNT)

Helium completes this let of top web3 tokens today. It is a decentralized wireless network. It enables devices anywhere in the world to wirelessly connect to the internet and geolocate themselves without the need for satellite location hardware or cellular plans.

Helium is powered by a network of miners and wireless network coverage providers. It’s native token, HNT, is used to pay miners to send data to and from the internet.

Miners have to stake HNT tokens to join the Helium network. Newly-minted HNT tokens are rewarded to miners who are a part of the consensus group.

As of today, HNT is ranked the 42nd biggest cryptocurrency. The current price of HNT is $11.77 USD with a 24-hour trading volume of $126,254,175 USD.

HNT has a live market cap of $1,405,434,286 USD. It has a circulating supply of 119,389,626 HNT coins and a max. supply of 223,000,000 HNT coins.

Are Web3 Tokens a Good Investment?

Web3 tokens, as any other cryptocurrencies, are highly volatile, which makes them risky assets. If you must invest in them, put what you can afford to lose.

Also Read Dogecoin vs Filecoin- Which To Buy In 2022

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Top cryptocurrency available on the Prestmit platform include Bitcoin, Litecoin, Dogecoin and USDT.

 

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As a cryptocurrency and gift card expert, I am passionate about exploring the intersection of finance and technology. With a background in both fields, I bring a unique perspective to my writing, offering an in-depth analysis of the latest developments and trends in the world of digital currencies and gift cards.

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