What Is Ethereum?
Ethereum (ETH) is the native cryptocurrency of the Ethereum blockchain platform, created by Russian-Canadian programmer Vitalik Buterin between 2013 and 2014. It serves as a medium for transactions, including gas fees for executing smart contracts. Unlike Bitcoin, Ethereum has no supply cap and operates independently of government or institutional control. Its ecosystem spans decentralized finance (DeFi), social media, publishing, and more, making ETH the second-largest cryptocurrency by market capitalization.
Ethereum vs. Bitcoin: Key Differences
| Feature | Ethereum (ETH) | Bitcoin (BTC) |
|---|---|---|
| Price (Sample) | ~US$2,736.62 | ~US$36,261.36 |
| Supply Cap | Unlimited | 21 million |
| Smallest Unit | 1 ETH = 10¹⁸ Wei | 1 BTC = 10⁸ Satoshi |
| Block Time | 10–30 seconds | 10 minutes |
👉 Discover the latest ETH price trends
Ethereum Price Trends
Since its launch, Ethereum has rapidly grown into the second-most valuable cryptocurrency. Over the past three years, ETH surged from ~US$163.05 in 2019 to ~US$2,736.62, marking a 1,500%+ increase. Analysts remain bullish due to its expanding utility.
Unique Advantages of Ethereum
- Unlimited Supply: Unlike BTC, ETH’s lack of a cap fosters utility-driven value.
- Broad Applications: Powers NFTs, ICOs, and smart contracts on Ethereum’s tamper-proof blockchain.
- Faster Mining: Blocks are generated every 10–30 seconds vs. Bitcoin’s 10 minutes.
Risks to Consider
- Volatility: ETH dropped 90% from its 2018 peak (~US$1,300 to under US$100).
- Adoption Dependency: Value relies on continued use of Ethereum’s blockchain.
- Security Risks: Exchanges/wallets may be hacked (e.g., US$17M ETH stolen in a past attack).
👉 Secure your ETH with a trusted wallet
FAQs About Ethereum
Q: Are there fees for buying ETH?
A: Most platforms charge minimal or no fees for purchases.
Q: Is ETH supply capped?
A: No—unlike Bitcoin, Ethereum has no maximum supply limit.
Q: How is ETH different from BTC?
A: ETH focuses on programmable contracts and unlimited supply, while BTC is a store of value with a fixed cap.
Q: What is Ethereum’s blockchain?
A: A decentralized platform enabling smart contracts via its cryptocurrency, ETH.
Q: Is ETH legal tender?
A: No—it lacks government backing and carries inherent risks.