What Is Utility Token?

A utility token provides access to a specific product or service within a blockchain ecosystem. Unlike governance tokens which grant voting rights, utility tokens are spent or consumed to use platform features. Examples include LINK (used to pay Chainlink oracle operators) and FIL (used to pay for Filecoin storage). Whale purchases of utility tokens often indicate expected increased usage of the underlying platform. Sonar tracks utility token whale activity to help traders identify growing ecosystems before usage metrics become publicly evident.