What are protocol tokens?

Instead of key metrics, he assigns each Protocol Token a single NAICS classification that reflects the specific industry of its main economic activity. Protocol Tokens are the second of the two main categories that structure the four types of crypto assets. Put simply, Protocol Tokens are a bit like vouchers.

How much is near protocol's native token worth?

The native tokens had market capitalizations of around $17.5 billion and $7.5 billion, respectively, in July 2022. Near Protocol’s native token NEAR had a little under $2.4 billion, to put it in perspective. The NEAR token is used for the staking that underpins the validation of blocks on the network.

What is a protocol in cryptocurrencies?

What is a protocol? Protocols are basic sets of rules that allow data to be shared between computers. For cryptocurrencies, they establish the structure of the blockchain — the distributed database that allows digital money to be securely exchanged on the internet.

What is an example of a protocol?

For example, Bitcoin and Ethereum are such protocols, and various apps are built upon them. And due to the coupled nature of protocol tokens and the services, the value of the protocol is expected to increase with adoption. And this might also reflect in the price of each protocol token in the future. (This is Metcalfe’s law)