How Does the Utility of a Token Affect Its Intrinsic Value?

A token's utility is the primary driver of its intrinsic value, representing its functional purpose within a decentralized application (dApp) or network. High utility, such as being required for governance, transaction fees, or access to a service, creates sustained demand.

Scarcity combined with essential utility drives the value up. Conversely, a token with no real-world use or required function has a low intrinsic value, regardless of market speculation.