What Is Base token?
A base token, in the context of cryptocurrencies, refers to the primary token or asset used in a specific trading pair or exchange. The base token is the token that is being traded or exchanged for another token, typically a quote token, see also quote token. For example, in the trading pair BTC/USD, BTC is the base token and USD is the quote token. The price of the quote token is quoted in terms of the base token.
The base token is an important concept in the cryptocurrency market, as it determines the value of the other token in a trading pair. In other words, the price of the quote token is derived from the price of the base token. This relationship between the base token and the quote token is used to determine the price of the quote token, which can then be used to determine the value of other assets that are pegged to it.