L1

Ethereum ETH

The dominant smart-contract platform, settling most of the activity in DeFi, NFTs, stablecoins, and Layer 2 rollups.

Price
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24h Change
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Live data via /api/coingecko/markets · Updated every page load

Founded
2015
Founder
Vitalik Buterin and others
Consensus
Proof-of-Stake
Max Supply
No hard cap; net issuance can be deflationary post-EIP-1559

What ETH is

Ethereum is a programmable blockchain that extends Bitcoin's design with a Turing-complete virtual machine, the EVM (Ethereum Virtual Machine). Where Bitcoin's scripting language is intentionally limited, Ethereum lets developers deploy smart contracts: self-executing code that runs deterministically on every node in the network. This single design choice opened the door to DeFi, NFTs, DAOs, and most of the on-chain economy that exists in 2026.

Ethereum was proposed by Vitalik Buterin in late 2013 and launched in July 2015 with co-founders including Gavin Wood, Joseph Lubin, Charles Hoskinson (later founded Cardano), and others. ETH, the network's native token, is used to pay gas fees for executing transactions and smart contract calls. In 2022, Ethereum transitioned from proof-of-work to proof-of-stake in an event known as The Merge, reducing energy consumption by ~99.95%.

How it works

Ethereum operates as a global state machine. Every full node maintains the complete state (account balances, contract storage, nonce values), and every transaction is a state transition that all nodes execute identically. Transactions are bundled into blocks every ~12 seconds, with validators selected to propose and attest to blocks based on their staked ETH (32 ETH per validator slot).

To send a transaction, a user pays gas in ETH: a base fee (which is burned, removing ETH from circulation) plus an optional priority tip to incentivize validators. Smart contracts are deployed to addresses and called by transactions; their execution costs gas proportional to computational complexity. Most user activity in 2026 happens on Layer 2 networks like Arbitrum, Optimism, and Base, which post compressed batches back to Ethereum L1 for security.

Use cases

Ethereum is the settlement layer for the bulk of crypto's economic activity. DeFi protocols (lending, decentralized exchanges, derivatives) hold tens of billions in total value locked. Stablecoins are issued primarily on Ethereum and its L2s. NFTs, on-chain identity, prediction markets, and DAO governance all run on Ethereum infrastructure. Validators earn ~3-4% APY for staking, which makes ETH function as both a productive asset and the gas token for the entire ecosystem.

Tradeoffs and criticism

Ethereum's biggest tradeoff is the constant tension between decentralization, scalability, and security (the "blockchain trilemma"). Base-layer throughput is intentionally limited (~15-30 transactions per second) to keep node operation accessible to ordinary users. The L2 scaling roadmap pushed most activity off the main chain, which works but adds complexity. Critics also flag MEV (miner/maximal extractable value) extraction by sophisticated actors, validator centralization risk in staking pools like Lido, and the regulatory uncertainty around ETH's status as a security in some jurisdictions.

Where to track ETH

Live ETH gas prices are at /api/gas. The DeFi TVL premium endpoint tracks Ethereum DeFi activity. For deeper context, see the smart contracts, Layer 2, and staking glossary entries.

Related coins

Frequently asked questions

How is Ethereum different from Bitcoin?
Bitcoin is designed primarily as digital money: simple, predictable, and intentionally limited in programmability. Ethereum is designed as a programmable platform: every contract is custom code, which enables DeFi, NFTs, DAOs, but also adds complexity and attack surface.
What is gas in Ethereum?
Gas is the unit that measures computational effort on Ethereum. Every transaction or smart contract call consumes gas, and users pay for that gas in ETH. More complex operations cost more gas; the price per unit fluctuates with network demand.
Is Ethereum still proof-of-work?
No. Ethereum transitioned to proof-of-stake in September 2022 via The Merge. Validators stake 32 ETH each to participate in consensus. The network now uses ~99.95% less energy than under proof-of-work.
What does it mean to stake ETH?
Staking ETH means locking up tokens to participate in network consensus, either by running a validator yourself (32 ETH minimum) or by depositing into a staking pool like Lido or Rocket Pool. Stakers earn protocol-issued rewards plus transaction fees.
How are L2s related to Ethereum?
Layer 2 networks process transactions off the Ethereum main chain and post compressed batches back. L2s inherit Ethereum security while offering 10-100x cheaper fees. Most user activity in 2026 happens on L2s, not on L1.