Ethereum is the world's second-largest cryptocurrency and the leading smart contract platform, created by Vitalik Buterin and launched in 2015. Unlike Bitcoin, Ethereum is a programmable blockchain that enables decentralized applications (dApps), DeFi protocols, NFTs, and Layer 2 scaling solutions. Ethereum transitioned from proof-of-work to proof-of-stake in September 2022 ('The Merge'), reducing energy consumption by 99.95%.
Ethereum's price is driven by DeFi total value locked (TVL), NFT market activity, Layer 2 adoption (Arbitrum, Optimism, Base), staking yield and ETH staked ratio, EIP upgrades and network roadmap progress, spot Ethereum ETF flows, gas fee trends, and the ETH/BTC ratio which indicates relative strength versus Bitcoin.
ETH typically has higher beta than BTC — it moves more in both directions. The ETH/BTC ratio is a key metric for crypto rotation. Staking rewards provide a yield floor. Network upgrade events and ETF news create sharp moves. Watch DeFi TVL as a leading indicator of network demand.
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Common questions about Ethereum (ETH-USD)