Ethereum (ETH)
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
Ethereum is the second-largest cryptocurrency and the leading smart contract platform. It enables decentralized applications (dApps), DeFi protocols, and NFTs through programmable smart contracts.
Ethereum is a blockchain platform created by Vitalik Buterin and launched in 2015. While Bitcoin is primarily a currency and store of value, Ethereum is a programmable blockchain that supports smart contracts and decentralized applications.
Ethereum transitioned from proof-of-work to proof-of-stake in September 2022 ("The Merge"), reducing its energy consumption by ~99.95% and enabling ETH staking.
Key features: - Smart contracts: self-executing programs that power DeFi, NFTs, and DAOs - EVM (Ethereum Virtual Machine): the runtime environment for smart contracts - Gas fees: users pay ETH to execute transactions and smart contracts - EIP-1559: a fee-burning mechanism that can make ETH deflationary during high usage
Ethereum hosts the majority of DeFi protocols, NFT marketplaces, and Layer 2 scaling solutions. Its ecosystem TVL (Total Value Locked) typically exceeds all other chains combined.
For investors, ETH is often the second-largest portfolio allocation after Bitcoin, offering both store-of-value properties and exposure to the broader crypto application layer.
Related Terms
Smart Contract
A smart contract is a self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met, without needing a middleman.
DeFi (Decentralized Finance)
DeFi is a category of financial services built on blockchain technology that operates without traditional intermediaries like banks. It includes lending, borrowing, trading, and earning yield through smart contracts.
Gas Fees
Gas fees are transaction costs paid to blockchain validators for processing transactions. Ethereum gas fees fluctuate based on network demand and can range from $0.50 to $100+ during peak congestion.
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