Demand & Utility: Why Do They Matter for Crypto?

Why do people prefer one crypto to another? Today, we reveal the secrets of demand: why one coin is popular and reliable while others are not.

Demand & Balance Demand for a token is crucial, but the more important factor is a balance between supply and demand. Limited supply with high demand, creates more healthy economics and positively impacts a token’s price. But what drives demand?

Utility & Ecosystem Why do people want to buy a certain cryptocurrency? The answer is simple. Because they understand its benefits and need it to make fast and easy transactions, pay gas fees, access different apps and games. So, the infrastructure built around the coin is the key to popularity.

Different tokens could be utilised in various ways, for example:

Today, we’ve put the puzzle together on the demand side of tokenomics. To get the whole picture, check our previous easy-to-understand guides on the supply side: token supply, issuance, and distribution.