As straightforward and well-organized as a list of cryptocurrencies may seem at first, it’s safe to say that so many people are still dumbfounded by the sector because there are numerous categories of tokens that each fulfil a different role. The bulk of blockchain smart contracts now rely on Ethereum, offering tokens like ERC-1155, ERC-77, and ERC-721, alongside some of the most famous of them all and those you’ll be delving into down below – the ERC-20 tokens. 

ERC-20 tokens are cryptocurrencies developed on the second-most popular blockchain, Ethereum, and have become a principal part of the cryptocurrency ecosystem. They took off and bloomed, backed by the rising ETH prediction and its massive spike in popularity over the past years, as one can see by comparing the asset’s past and current performances. 

This space rises by leaps and bounds, building a potent foundation for dozens of projects with multiple use cases. In Layman’s terms, ERC-20 represents a technical standard that establishes some rules and guidelines for building a fungible project on the Ethereum network. Notably, some token lists are readily available across more chains and take different forms of tokens, not limited to mere ERC-20 tokens. To give an example, Tether, one of the best stablecoins by market share, is offered as an ERC-20 token and more, for there are USDT’s on blockchains like Algorand and Solana you can invest on. 

These tokens rose to be the pillar of the decentralized ecosystem, with examples including but not being limited to non-fungible tokens (NFTs), decentralized finance (DeFi), decentralized applications (dApps), play-to-earn (P2E), the metaverse, and the list goes on. The tokens in question may be kept on ERC-20 wallets or Ethereum wallets, which are intuitive enough for both newcomers and seasoned investors. 

So, now that ERC-20 tokens have grabbed a lot of attention, what tokens will top the list of the most promising ones in 2024? Do you feel like you can hit the jackpot with any of them?

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Ethereum (ETH) 

Without needing any introduction, Ethereum is one of the cryptocurrencies most muttered about. It has managed to become the largest altcoin and build the foundation for millions of tokens that followed. As expected, it’s the most popular and priciest ETC-20 token, with a supply of 120 MN circulating ETH and a market cap worth over $286BN. Together with Bitcoin, the first and largest crypto to date, these two have seized over half of the cryptocurrency market this year. 

ERC-20 tokens are valuable for some enterprises and startups, as they secure their longevity in the market. ERC-20 commands the fundamental roles that Ethereum smart contracts have to introduce in their coding. While you can use ETH as payment for network and computational resources, ERC-20 tokens may serve a whole new range of functions, like representing virtual or real-world assets investors can add to their portfolios. 

Ethereum is one of the tokens that have secured a continuous expansion, proving their unmatched potential that may survive potential bearish periods. The rally is continuous, and therefore, Ethereum is estimated to stick to an upward trajectory until this year’s final.  

Chainlink (LINK)

Chainlink is deemed the decentralized network’s oracle because the platform bridges the gaps between numerous other blockchains via smart contracts. It empowers blockchains to securely cooperate with outer data feeds, events, and payment methods, additionally offering some critical off-chain information for complex contracts to dominate digital agreements. 

After an extended consolidation phase, the LINK price has risen above a two-digit figure. Despite the bears’ restricting at some levels, the price point is expected to break through the levels and register a boom in the last quarter of this year. This year only, the network welcomed over 215 projects, totaling 2,100 projects ever since it was released in 2019 by Steve Ellis. With a capped supply fixed at 1BN tokens, and only 608 MN that have been released as of August of this year. It’s safe to say that once the limit is breached, the chances of the assets skyrocketing in price may rise as well due to the scarcity and Chainlink’s anti-inflationary nature. 

Wrapped Bitcoin (WBTC)

Wrapped Bitcoin is a very popular option in the world of ETC-20 tokens. It works as a tokenized alternative to the heavyweight BTC to be compatible with the Ethereum blockchain. It adheres to the ERC-20 standard and may be effortlessly integrated with the latter’s ecosystem, such as DeFi, DEX, and prediction markets. 

Custodians and merchants naturally monitor this asset, as its price is pegged to Bitcoin’s and is always 1:1, backed by the flagship coin. Due to this, the price fluctuation mirrors that of the asset that backs it up. 

Wrapped tokens became a central part of DeFi, hence WBTC’s massive popularity. If you want to invest in it, please treat this undertaking as you would with Bitcoin, investing only what you can afford to lose in case your anticipations don’t turn into reality. 

Maker (MKR)

Topping the list of dApps on Ethereum, the Maker (MKR) protocol is commanded by the MakerDAO and built and managed by a developer team. MKR stands as the native token of the Maker Protocol and Maker DAO and was created on Ethereum’s network. Similar to how you possess stocks in a conventional company and how stock owners’ opinions matter regarding how the establishment works, Maker owners can vote on different modifications in the protocol by staking their MKR tokens. 

The protocol is designed to permit users to manage and release DAI stablecoin and have a say in how the project transforms and improves. The outstanding bull run of 2021 brought about an unforeseen scenario for MKR, as its price stayed under bearish pressure for a while. Nevertheless, a meteoric recovery followed that sent the asset to a critical resistance point. Despite the profit withdrawals from investors with bearish views possessing Maker, the asset’s price is generally expected to recover fairly and spike, overcoming the bearish phase at some point. 

Last words

With over 500K ERC-20 tokens, you’re spoiled for choice if you want to diversify your investment portfolio with multiple choices. Besides the alternatives unearthed above, some other notable ERC-20 token lists you can look into are Uniswap (UNI), Polygon Ecosystem Token (POL), Lido Staked Ether (stETH), and the list continues. Invest heedfully!