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Ethereum

ETH · Field entry
Smart-contract platformSmart contractsDeFiReal-world assets

A programmable blockchain that runs apps, stablecoins and tokens, paid for in ETH

$2,727.301.25%Snapshot · October 4, 2026 · updates live
Market cap
$333.05B
24h volume
$7.31B
Rank
#2
Circulating
122.11M ETH
Max supply
No fixed cap
All-time high
$4,946.05 August 24, 2025

ETH price chart

7-day snapshot. Chart data from CoinGecko.

What is Ethereum?

Ethereum is a public blockchain that can run programs called smart contracts, so people can build apps for payments, lending, trading and digital ownership on top of it. ETH is the network's native coin: you need it to pay transaction fees, and it is staked by validators to keep the network secure.

Utility Lens

What Ethereum actually does

Ethereum gives developers a neutral, always-on computer for financial and ownership apps that anyone can use without permission.

Real-world usage
establishedEthereum hosts the largest share of stablecoins, DeFi activity and tokenized real-world assets, and that use has been sustained for years.
Token necessity
essentialEvery transaction on Ethereum is paid for in ETH and validators must stake ETH to take part, so the network cannot run without it.
Decentralization
highEthereum has a very large, globally spread validator set and several independent client teams, although a few staking providers and block builders hold notable shares.
Track record
longLive since July 2015, Ethereum survived the 2016 DAO hack, which led to a contested fork, and moved from mining to staking in 2022 without interrupting service.

How we rate

What it’s used for

People use Ethereum to hold and send stablecoins, trade on decentralized exchanges, borrow and lend through DeFi apps, and hold tokenized assets such as tokenized Treasury funds. Many users now reach Ethereum through cheaper layer-2 networks that post their data back to the main chain. ETH itself is staked for rewards, used as loan collateral, and held through US spot ether ETFs.

Role of the ETH token:

gasstaking securitycollateral

Evidence of real use

  • BlackRock's tokenized Treasury fund BUIDL launched on Ethereum on March 20, 2024. Source
  • The SEC approved registration statements that let spot ether ETFs begin trading in the US on July 23, 2024. Source
  • The Dencun upgrade added 'blob' data space on March 13, 2024, which sharply lowered costs for layer-2 networks. Source
  • A March 2026 joint SEC and CFTC interpretation listed Ether (ETH) as an example of a digital commodity. Source

How Ethereum works

Ethereum is a blockchain that stores both balances and small programs called smart contracts. When you use an app on Ethereum, you send a transaction that asks a contract to run, and every validator executes the same code to agree on the result. Each step of computation costs a small fee called gas, priced in ETH, which stops people from clogging the network with endless work.

Since the Merge in September 2022, Ethereum has used proof of stake instead of mining. Validators lock up 32 ETH or more as a security deposit and take turns proposing and confirming blocks every 12 seconds. If they try to cheat, part of their deposit can be destroyed, a penalty called slashing. Ordinary holders can join in through staking pools or exchanges, at the cost of trusting that provider.

To keep fees down, Ethereum leans on layer-2 networks, which process transactions elsewhere and post compressed data back to the main chain. Upgrades such as Dencun (2024), Pectra (May 2025) and Fusaka (December 2025) expanded the data space that layer 2s use and improved staking. The next planned upgrade, Glamsterdam, was still in testing as of October 2026, with no confirmed mainnet date.

Key moments

  1. 2015Ethereum's mainnet launches in July after a 2014 crowdsale.
  2. 2016After the DAO hack, Ethereum hard forks to return funds; the original chain continues as Ethereum Classic.
  3. 2021The London upgrade introduces EIP-1559, which burns part of every transaction fee.
  4. 2022The Merge switches Ethereum from proof of work to proof of stake in September.
  5. 2024Dencun cuts layer-2 costs in March; US spot ether ETFs begin trading in July.
  6. 2025The Pectra (May) and Fusaka (December) upgrades go live, improving staking and data capacity.

Supply

ETH has no fixed maximum supply. New ETH is issued to validators as staking rewards, while the base fee on every transaction is permanently burned, so net supply can rise or fall depending on how busy the network is. In periods of low activity issuance outweighs the burn and supply grows slowly.

Risks to understand

  • Smart-contract risk: apps built on Ethereum can contain bugs, and exploits have drained hundreds of millions of dollars from individual protocols over the years.
  • Staking concentration: a few large liquid-staking providers and exchanges control a big share of staked ETH, which could matter if they faced the same failure or legal order.
  • Layer-2 complexity: many users now transact on layer 2s that have their own operators, bridges and upgrade keys, adding risks beyond Ethereum itself.
  • Fee and value questions: as activity moves to layer 2s, fees burned on the main chain can fall, which affects the ETH supply picture.
  • Price volatility and phishing: ETH swings widely in price, and fake token approvals and wallet-drainer sites are common threats for Ethereum users.

Ethereum FAQ

What is the difference between Ethereum and ETH?

Ethereum is the network and ETH is its native coin. You need ETH to pay fees on Ethereum, even when you are sending a different token such as a stablecoin.

Is ETH capped like bitcoin?

No. ETH has no hard cap; supply changes based on staking rewards minus the fees that are burned.

Can I stake ETH myself?

Running your own validator requires 32 ETH and a reliable always-on setup. Smaller holders usually stake through a pool or exchange, which adds counterparty and smart-contract risk.

What are layer-2 networks?

They are separate networks that handle transactions cheaply and then record proof or data on Ethereum. Read our layer-2 guide before moving funds to one, because each has its own bridge and security setup.

Sources

  1. Ethereum roadmap: Glamsterdam — ethereum.org
  2. Fusaka Mainnet Announcement — Ethereum Foundation
  3. Pectra Mainnet Announcement — Ethereum Foundation
  4. Dencun Mainnet Announcement — Ethereum Foundation
  5. SEC Approves Spot Ether ETFs — Troutman Pepper Locke
  6. Application of the Federal Securities Laws to Certain Types of Crypto Assets (Release 33-11412) — U.S. Securities and Exchange Commission

Last reviewed October 4, 2026 by The Crypto Guide editorial team. Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.