Definition
Ethereum (ETH) is a decentralized platform for creating smart contracts and decentralized applications (dApps). The cryptocurrency Ether (ETH) is used to pay for transactions and computations on the network.
Key Differences from Bitcoin
| Feature | Bitcoin | Ethereum |
|---|---|---|
| Purpose | Digital money | Application platform |
| Smart contracts | No | Yes |
| Supply | 21M maximum | No hard limit |
| Consensus | Proof of Work | Proof of Stake |
| Creator | Satoshi Nakamoto | Vitalik Buterin |
What You Can Do on Ethereum
- DeFi — decentralized finance (lending, trading)
- NFTs — non-fungible tokens
- DAOs — decentralized organizations
- Tokens — create cryptocurrencies (ERC-20)
Price History
| Year | Event | Price |
|---|---|---|
| 2015 | Launch | $0.30 |
| 2017 | ICO boom | $1,400 |
| 2021 | DeFi summer | $4,800 |
| 2022 | PoS transition | ~$1,500 |
| 2024 | ETF | $3,500+ |
Ethereum and Staking
After transitioning to Proof of Stake, ETH holders can stake their coins and earn ~4-5% annual yield.
Ethereum for DCA
Ethereum is the second most popular asset for DCA after Bitcoin. Calculate potential profits with our DCA calculator.
