Valheim is unique in several ways as we well know but the one I think really sets it apart is your character seems to be stored locally rather than in server files.
What this means is that you can log off the server you are playing and join another server and your character remains intact. Not only your skill progression and equipped gear but EVERYTHING in your inventory as well.
Other reasons you may want to server hop could be that since this is a true sandbox, once you clear a crypt it is cleared. The loot does not come back. On busy servers this can be a real problem. So you just server hop to a fresh server and loot what you need. This is why we have a "Utility" server running.
Another great thing is if you are playing on a server that will be cancelled at the end of it's contract, you can find a new server and move all of your loot and mats to the new server. The only thing you will loose is your buildings and if you wanted you can destroy them and bring the leftover mats.
pretty cool shit if ya ask me!