Ethereum (ETH), launched in 2015 by Vitalik Buterin and others, is a blockchain you can run apps on. If Bitcoin is 'digital money', Ethereum is closer to a 'world computer' where apps β smart contracts β run.
It powers DeFi, NFTs, stablecoins, games and much more. The coin ETH is both the 'fuel' (gas) to use the network and an asset in its own right.
To run a transaction or contract you pay a fee called 'gas' in ETH. Since EIP-1559 (2021), part of that fee is burned, so heavier usage reduces ETH's net supply.
Ethereum has no hard cap like Bitcoin, but with low issuance and burning it can turn net deflationary (around 120 million ETH today). Over 27% β roughly 33 million ETH β is locked in staking, reducing the circulating amount.
In 2022's 'Merge', Ethereum abandoned mining (PoW) for 'proof of stake' (PoS). Validators who deposit 32 ETH confirm transactions and earn rewards, cutting energy use by more than 99%.
The Merge is regarded as one of the biggest technical events in blockchain history. Since then Ethereum has pushed to pair scalability with sustainability.
The 'Pectra' (May 2025) and 'Fusaka' (December 2025) upgrades are live and greatly improved the network. Layer-2 (L2) fees in particular have fallen over 90% since 2024's Dencun, making small transactions cheap.
Spot Ether ETFs are established, reaching about $14 billion in assets by May 2026, with ongoing momentum to include staking rewards in ETFs.
The next major upgrade, 'Glamsterdam' (expected mid-2026), focuses on scaling the base layer: higher throughput (raising the gas limit), parallel processing and ZK-proof verification, with 'HegotΓ‘' to follow.
PeerDAS from Fusaka keeps driving L2 data costs down, and the long-term aim is full danksharding and ZK at L1 for a network that is cheap, fast and secure at once.
The hottest debate is whether, as L2s grow and L1 fee revenue falls, enough value accrues to ETH itself. On top of that come fast rivals like Solana and the complexity and execution risk of frequent upgrades.
Regulatory uncertainty β such as whether staking counts as a security β also lingers. This article is information; always make investment decisions at your own responsibility.
Links to major exchanges below. Check listing and fees on each exchange. Not investment advice; links may contain affiliate (referral) codes.