Top 6 Platform Tokens to Know about in 2023 [by Market Capitalization]

Introduction

To start off, let us first understand more about what a platform token is. A platform token is a type of crypto that is typically used to facilitate transactions and interactions within a specific blockchain-based platform. These tokens are generally created and distributed by the developers of the ecosystem and can be used to access various decentralized services, features, and resources within the platform’s ecosystem.

These platform tokens are designed to provide a host of benefits to their holders, ranging from reduced transaction fees, access to exclusive content, and voting rights on platform governance decisions. These tokens can also serve as a store of value, as their value can appreciate as the platform grows and becomes more widely used. Platform tokens are extremely important in the world of crypto as they play a significant role in the development and growth of blockchain-based platforms, as they incentivize users to participate in the platform and contribute to its overall success.

Read more: Top AI Crypto Tokens in 2023

Top Platform Tokens by Market Cap [2023]

Cardano (ADA)

Cardano’s native crypto token ADA is one of the best platform tokens for a variety of reasons. Firstly, it is backed by a strong team of developers, academics, and researchers who are committed to creating a secure, scalable, and sustainable blockchain platform. This team includes one of the co-founders of Ethereum, Charles Hoskinson.

Secondly, Cardano uses a unique proof-of-stake (PoS) consensus algorithm called “Ouroboros”, which is designed to be very energy-efficient and secure at the same time. This means that the platform can process transactions and run applications without consuming large amounts of energy to secure the network, as is the case with Bitcoin. Thirdly, Cardano is highly scalable and has the potential to handle a large number of transactions per second. This makes it well-suited for use cases such as decentralized finance (DeFi) and smart contract applications for mass adoption.

Finally, Cardano has a large community of users and developers who are actively working to build and improve the platform. This community is committed to creating a decentralized and inclusive financial system that is accessible to everyone, regardless of their background or location. This is why Cardano features on the list of top platform tokens to know about in 2023.

Polygon (MATIC)

Polygon’s native crypto token, MATIC – which was initially built as a layer-2 scaling solution on the Ethereum network is another strong contender in the list of top platform tokens to know about in 2023. It is built on top of the Ethereum blockchain, which means that it inherits many of Ethereum’s features, benefits, and security. However, it also addresses some of the scalability issues that have been identified with Ethereum, such as high gas fees and slow transaction processing times. Additionally, Polygon uses a unique layer-2 scaling solution called Plasma, which allows for faster and more efficient transactions than the base Ethereum network. This makes it well-suited for use cases such as decentralized exchanges, gaming, and non-fungible tokens (NFTs).

Thus, MATIC is a promising platform token that is well-positioned to address many of the key challenges facing the blockchain industry today. Its innovative technology, strong community, and commitment to decentralization make it a compelling investment opportunity for those looking to participate in the growth of the blockchain ecosystem.

Read on: Polygon vs Arbitrum vs Optimism 

Solana (SOL)

Another major player in the platform token sector is Chainlink. LINK is the native crypto token that becomes the backbone for a decentralized oracle network that connects smart contracts with real-world data, enabling them to access and process information from outside the blockchain. Thus Chainlink makes it possible to create more complex and sophisticated smart contract applications, such as insurance contracts, supply chain management, and prediction markets on a decentralized network.

This feature is facilitated by the strong network of node operators on the Chainlink platform who are responsible for retrieving and transmitting data to various blockchains for all sorts of requirements. These node operators are incentivized to provide accurate and timely data, as they are rewarded with LINK tokens for their efforts. This ensures the reliability and security of the network, as well as provides a means of decentralized governance. This has enabled Chainlink to grow a very strong and growing ecosystem of developers and users who are actively building and using decentralized applications (dApps) on the platform, making it a very attractive platform token to watch out for in 2023.

Cosmos (ATOM)

Next up on the list of top platform tokens in 2023 is Cosmos. Cosmos is a decentralized network of blockchains that allows for seamless interoperability between various different blockchain platforms. This means that different blockchain networks can communicate and exchange value with each other, enabling a more connected and efficient blockchain ecosystem. To achieve this, Cosmos uses a consensus mechanism known as Tendermint, which is also designed with scalability and security in mind. This algorithm allows for fast and efficient consensus among all network participants, while also providing a strong degree of security and resistance to malicious attacks.

In this day and age, where we have thousands of blockchain networks all over the place, with new ones being created every single day, interoperability is something that becomes very important to ensure the mass adoption of Web3 into the masses. If we do not solve for interoperability – then we face the issue of people being stuck to different blockchains, and not being able to access features and services provided by another due to incompatibility. Thus, Cosmos is a promising platform token that is well-positioned to address some of these key challenges facing the blockchain industry today.

Ethereum Classic (ETC)

Last but not least in this list of top platform tokens to look out for in 2023, is Ethereum Classic. Ethereum Classic is a decentralized blockchain platform that is based on the original Ethereum blockchain. This means that it inherits many of Ethereum’s original features, including its smart contract functionality. Additionally, ever since the main Ethereum network decided to shift from PoW to PoS, post the Ethereum Merge that took place in September 2022, Ethereum Classic has been receiving a lot of attention as it decided to stay with the PoW consensus mechanism. Proponents of PoW argue that PoS is a less secure consensus mechanism, and despite PoW being more energy-hungry – it is more dependable.

Ethereum Classic also happens to have a strong focus on decentralization and immutability. It was created as a result of a hard fork in the Ethereum blockchain, which was triggered by a disagreement over the best way to handle a security breach back in 2017. The Ethereum Classic community believes that the original blockchain should be maintained in its original state, without any modifications or rollbacks, staying somewhat true to the idea of pure decentralization.

Regardless of all that, Ethereum Classic is a very strong alternative for those looking for a smart contract-capable PoW network to become a miner on. Ethereum Classic also features lower gas fees than its sibling and thus saw a lot of migration from Ethereum during the Ethereum Merge.

Additional read: Top Layer 2 Crypto Projects

So, how can you invest in these platform tokens?

Today investing in platform tokens is extremely simple with the CoinDCX App! Just download the CoinDCX App crypto investing app, enter the details required, and wait for your profile to get verified. Once done, fund your wallet and you can now buy any platform token of your choice!

Conclusion

Thus, in conclusion, this article compiles a list of the top 6 platform tokens that you need to watch out for in 2023. Especially with the bear run seemingly coming to a halt and a resumption of a bull run on the horizon, these tokens could see incredible growth in terms of price and development on the blockchain, thus making them an attractive proposition to look at.

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