The $EGLD cryptocurrency, native to the MultiversX blockchain (formerly known as Elrond), serves multiple purposes within its ecosystem in 2025. MultiversX is designed to be a highly scalable, secure, and decentralized blockchain platform, and EGLD plays a central role in powering its operations and incentivizing participation. Based on its established design and ongoing developments, here’s what EGLD’s purpose entails this year:
Transaction Fees: EGLD is used to pay for transaction fees on the MultiversX network. With its ability to process thousands of transactions per second at a low cost (historically around $0.001 per transaction), EGLD facilitates fast and affordable transfers, making it a practical medium for everyday use and decentralized applications (dApps).
Staking and Network Security: $EGLD
holders can stake their tokens to support the network’s Secure Proof of Stake (SPoS) consensus mechanism. By staking, users help secure the blockchain and validate transactions, earning rewards in return. This incentivizes active participation and ensures the network remains decentralized and robust.
Governance: EGLD enables holders to participate in the governance of the MultiversX ecosystem. Staked tokens often come with voting rights, allowing users to influence network upgrades, protocol changes, and other key decisions, fostering a community-driven development process.
Smart Contracts and dApps: Developers and users rely on EGLD to deploy and interact with smart contracts and dApps on the platform. MultiversX’s scalability, enhanced by its adaptive state sharding technology, supports a wide range of applications—from DeFi to NFTs and metaverse projects—making EGLD the fuel for these innovative use cases.
Ecosystem Growth: In 2025, EGLD continues to underpin MultiversX’s ambition to bridge blockchain with real-world applications, including fintech, AI, and the metaverse. Its role extends to incentivizing developers (e.g., through smart contract royalties, where creators earn a percentage of gas fees) and supporting initiatives like the xPortal app, which aims to simplify crypto access for mainstream users.
As of March 21, 2025, MultiversX’s focus on scalability, speed, and user experience positions EGLD as a versatile utility token driving a next-generation blockchain ecosystem. Its purpose remains tied to enabling a decentralized, efficient, and interconnected digital economy, with ongoing developments likely reinforcing its utility throughout the year.