Whether you are an experienced investor or new to the market, this comprehensive article will offer valuable insights to help you navigate and make informed decisions about the best ERC-20 tokens this year.

There are hundreds, if not thousands, of ERC-20 tokens for investors to choose from.  We evaluate cryptocurrency projects in this ERC-20 tokens list based on technology, market performance, community engagement, and unique attributes.

Let’s take a look.

9 Best ERC-20 Tokens to Invest In

  1. 5th Scape (5SCAPE) – Explore limitless VR possibilities with 5SCAPE Coin
  2. Sponge V2 (SPONGEV2)Overall Best ERC-20 Token With A High Minimum Staking APY of 40%
  3. Chainlink (LINK) – Blockchain Oracle Providing Infrastructure for Ethereum
  4. Tether (USDT) – Leading Stablecoin Pegged to the US Dollar
  5. ApeCoin (APE) – ERC-20 Token for the Bored Ape Yacht Club Ecosystem
  6. Decentraland (MANA) – One of the Best ERC-20 Tokens for the Metaverse
  7. Uniswap (UNI) – The Largest Decentralized Exchange on Ethereum
  8. Ethereum (ETH) – The Cryptocurrency That Started It All
  9. Maker (MKR) – Leading DeFi Coin for Decentralized Borrowing and Lending

A Closer Look at the Best ERC-20 Tokens List

1. Sponge V2 (SPONGEV2) 

Topping our list of ERC-20 tokens is Sponge V2, a trending new $SPONGE meme coin upgrade with a play-to-earn (P2E) feature and a Stake-to-Bridge system. It is building on the original Sponge token’s 100x growth in 2023. 

The Stake-to-Bridge mechanism allows holders of $SPONGE to seamlessly upgrade to V2 tokens by staking their V1 tokens. These V1 tokens are then locked in and converted, a strategy intended to support the token’s value and encourage a long-term commitment among holders. 

Additionally, Sponge V2 offers incentives for this transition, with a minimum staking APY of 40% extending over four years.

SpongeV2

A key addition to Sponge V2 is its P2E gaming component, allowing users to earn $SPONGEV2 tokens through engaging gameplay. 

Sponge V2 has capped its token supply at 150 billion, allocating a major portion to staking rewards and the P2E gaming feature. Followers can stay updated on exchange listings and P2E game developments through Sponge’s X (Twitter) and Telegram channels.

Hard Cap N/A
Total Tokens 150 Billion
Tokens available in presale N/A
Blockchain Ethereum Network
Token type ERC-20
Minimum Purchase None
Purchase with USDT, ETH, Card

Chainlink plays a critical role in the Ethereum blockchain. It’s what’s known as a blockchain oracle, allowing data from outside the world of crypto to be appended to smart contracts. For example, if a smart contract depends on a sports game’s score or the US dollar’s value, Chainlink can provide that data to the smart contract.

That makes Chainlink a lot like infrastructure for the Ethereum blockchain. Think of it as piping. Within this piping, the water that flows through is not only data but also LINK. LINK is the payment required for many critical network operations, including receiving data. It’s also used to pay data providers to keep Chainlink running smoothly.

chainlink homepage

The supply of LINK is limited to 1 billion tokens and won’t increase. That means as the Chainlink network sees more use, demand for LINK goes up but supply remains the same. Investors who hold LINK could find themselves in a position where they command high prices for LINK they’re willing to inject into data pipelines.

Cryptoassets are a highly volatile unregulated investment product. 

3. Tether (USDT)

On this ERC-20 tokens list is Tether, the world’s largest stablecoin by market cap. It’s pegged to the US dollar and fully backed by reserves, making it much more resilient to market volatility than algorithmic stablecoins. While the price of Tether has fluctuated slightly from its peg, it is generally worth almost exactly $1 per coin.

There’s not much that’s exciting about USDT for investors. The whole point of this cryptocurrency is that 1 USDT will always be worth $1. In many ways, USDT has become the digital equivalent of cash in the ERC-20 ecosystem.

Tether USDt price chart

However, since it’s digital cash, USDT can be used by investors like cash. In effect, investors can swap to USDT whenever they want to sit out volatility in the rest of the crypto market, but don’t want to go through the costly process of converting their crypto holdings to real US dollars.

Cryptoassets are a highly volatile unregulated investment product. 

4. ApeCoin (APE)

ApeCoin is a relatively new ERC-20 token created by Yuga Labs, and has made it on the best utility tokens list. Although the ApeCoin token does not grant direct governance over the projects, it allows the holder to have a say in the future direction of the ape-themed community. This includes the ability to prioritize projects, which could be appealing for investors with a long-term outlook.

More immediately, APE is gaining attention as one of the best ERC-20 tokens to buy in 2024 because of speculation around the release of the Otherside metaverse. This is a new metaverse project being developed by Yuga Labs. It’s widely expected that virtual land sales will be conducted in ApeCoin after Otherside is released.

APE price chart

If that happens, metaverse investors will rush to invest in ApeCoin so they can buy land. The coin’s supply is permanently fixed at 1 billion tokens, so a spike in demand for ApeCoin could potentially send the price of this token soaring.

Cryptoassets are a highly volatile unregulated investment product. 

5. Decentraland (MANA)

Decentraland is one of the most popular metaverse platforms. It supports everything from crypto games like ICE poker to virtual concerts to digital advertising for blockchain-friendly brands.

Within the Decentraland metaverse, MANA is the center of the virtual economy. This ERC-20 cryptocurrency pays for virtual land purchases, digital goods, and services. MANA Price Chart

Interestingly, MANA is a deflationary cryptocurrency. Every time land NFTs are auctioned off in Decentraland, MANA is burned in the process, and as more people and brands flock to Decentraland, the supply of MANA will continue to drop. At the same time, demand for MANA should increase since there will be more users in the virtual world who want to purchase goods and services.

Many analysts think MANA is one of the best ERC-20 tokens to invest in today. Interest in the metaverse is growing fast, and Decentraland has demonstrated that it can cater to an extremely wide audience of users.

Cryptoassets are a highly volatile unregulated investment product. 

6. Uniswap (UNI)

Uniswap is a decentralized crypto exchange – the largest exchange running on the Ethereum blockchain. Since it runs on Ethereum, investors can use Uniswap to trade any ERC-20 token and other tokens compatible with the ERC-20 standard.

UNI is the native ERC-20 cryptocurrency of the Uniswap exchange and is among the hottest cryptos this year. It’s primarily a governance token, giving users a say in how the Uniswap project develops moving forward. However, this DEX coin also earns rewards for token holders based on the exchange fees charged by Uniswap. The more people who use Uniswap, the more valuable the UNI token.

UNI Price Chart

Importantly for investors, Uniswap could benefit in the long run from the downturn in the crypto market in 2022. Uniswap’s decentralized nature doesn’t require investors to give up their funds’ private keys when exchanging.

So, Uniswap may look pretty attractive when the crypto market rebounds – and that’s good for UNI token holders.

Cryptoassets are a highly volatile unregulated investment product. 

7. Ethereum (ETH)

Ethereum is the cryptocurrency that arguably enabled all of the other ERC-20 tokens on this list to flourish. Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, on which all ERC-20 coins are built.

ETH isn’t as volatile as other cryptocurrencies on this list, thanks to its enormous $26.8 billion market cap. That can be good for investors when they want to shed risk. ETH is still a bellwether in the crypto market, but it doesn’t swing quite as wildly as many smaller ERC-20 cryptocurrencies.

ethereum price chart

Another reason investors should consider ETH right now is because the Ethereum blockchain is expected to make the long-awaited switch to proof-of-stake. This switch, known as ‘The Merge,’ will make it harder for new Ethereum to be minted and allow crypto staking on top platforms. That puts a damper on supply and could potentially increase the value of ETH.

8. Maker (MKR)

Maker (MKR) is the governance and utility token of the MakerDAO. MakerDAO is all about borrowing and lending without needing traditional middlemen like banks. MakerDAO uses smart contracts built on the Ethereum blockchain to facilitate loans and govern all the details of a loan’s mechanics, such as repayment terms, interest rates, and margin calls.

What’s exciting about MakerDAO is that loans can be distributed in DAI, a stablecoin built on the ERC-20 standard. By issuing loans in DAI, MakerDAO loans are somewhat insulated from volatility in the crypto market.

Maker MKR price chart

The MKR token is designed to balance the supply of DAI. When there’s too little DAI and its price increases, MKR is destroyed to create a new DAI. So, the more people that use MakerDAO for decentralized lending, the greater the need for new DAI – and the lower the supply of MKR.

In effect, the value of MKR is directly tied to the popularity and success of MakerDAO as a lending platform.

Cryptoassets are a highly volatile unregulated investment product. 

What Is an ERC-20 Token?

ERC-20 is a set of technical standards used for creating tokens on the Ethereum blockchain. So, an ERC-20 token is any token created using the ERC-20 standards.

The ERC-20 standard allows different tokens to be exchanged using the Ethereum blockchain. Investors can exchange Uniswap for Tamadoge or ApeCoin for Lucky Block since they all use the ERC-20 standard.

The ERC-20 standard was first established in 2015. At the time, hundreds of new coins were being created to take advantage of smart contracts introduced by the Ethereum blockchain. Investors and developers needed an easy way to exchange between all these different coins, or else all the different projects being created on the Ethereum blockchain would exist in their own silos.

The ERC-20 standard enabled creators to agree on basic technical specifications and ensures ERC-20 tokens are compatible with Ethereum exchanges, crypto wallets, and dApps.

To acquire some of the best ERC-20 tokens, you can participate in token sales, such as presales or initial coin offerings (ICOs), where the tokens are available for purchase.

Why Invest in ERC-20 Coins

When investing in cryptocurrency, investors have many options beyond ERC-20 tokens. So why should they invest in ERC-20 tokens?

The main reason to invest in the best new ERC-20 tokens is that they’re interchangeable with any other ERC-20 token. That makes it incredibly simple to move in and out of positions or to take advantage of new investment opportunities on the Ethereum blockchain.

ERC-20 tokens are a widely adopted standard for token implementation on the Ethereum blockchain. They ensure interoperability, making it easier for developers to create and users to interact with various tokens. These tokens are widely used for ICOs and crowdfunding projects, providing a simple and efficient way for projects to develop and distribute their own tokens to investors.

ERC-20 tokens are created as smart contracts on the Ethereum blockchain, which enables programmable and automated functionalities such as distributing dividends and implementing voting mechanisms. Due to their widespread use and acceptance, ERC-20 tokens often have higher liquidity than tokens on other blockchains, making it easier for users to buy or sell them at market prices.

Overall, ERC-20 tokens play a crucial role in decentralizing financial systems by enabling peer-to-peer transactions without the need for traditional intermediaries. This decentralization is a crucial benefit of blockchain technology, and ERC-20 tokens are fostering innovation in the blockchain space by enabling the creation of diverse tokenized assets.

Conclusion

We hope this article helps you better understand the ERC-20 token standard and make informed decisions about the best ERC-20 tokens to invest in this year.

At the top of our ERC-20 tokens list is Sponge V2, which offers new investors the opportunity to earn high rewards through a stake-to-bridge mechanism. It also features a P2E game with the goal of being listed on major exchanges.

FAQs

Which wallet is best for ERC-20?

Are ERC-20 tokens valuable?

What coins are ERC-20 tokens?

Should I invest in ERC-20 crypto?

How to buy ERC-20 tokens?