What is Ethereum used for?

Ethereum hosts most of the DeFi ecosystem, including decentralized exchanges, lending markets, and stablecoins. It's also the base layer for the majority of Layer 2 scaling solutions.

Yes. Since the Merge, ETH holders can stake their tokens to help secure the network and earn rewards. Solo staking requires 32 ETH, while liquid staking protocols allow staking any amount.

Ethereum (ETH)

Programmable money and the leading smart contract platform.

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Category: Smart contracts · Layer 1
Launched: 2015
Founders: Vitalik Buterin and co-founders
Consensus: Proof of Stake (post-Merge)

About Ethereum

Ethereum is the second-largest cryptocurrency by market capitalization and the most widely used smart contract platform. Launched in 2015, it expanded the original Bitcoin concept by adding a Turing-complete virtual machine that can execute arbitrary code on-chain.

In September 2022, Ethereum transitioned from Proof of Work to Proof of Stake (the 'Merge'), reducing its energy consumption by over 99%. ETH is the native gas token used to pay for every transaction and computation on the network.

What is ETH used for?

Decentralized finance (DeFi) collateral
NFT minting and marketplaces
Layer 2 settlement (Arbitrum, Optimism, Base)
Staking yield via solo or pooled validators

Ethereum FAQ

What is Ethereum used for?: Ethereum hosts most of the DeFi ecosystem, including decentralized exchanges, lending markets, and stablecoins. It's also the base layer for the majority of Layer 2 scaling solutions.
Can ETH be staked?: Yes. Since the Merge, ETH holders can stake their tokens to help secure the network and earn rewards. Solo staking requires 32 ETH, while liquid staking protocols allow staking any amount.

Disclaimer: The content on this page is for educational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile. Always do your own research and never invest more than you can afford to lose. See our methodology for details on how we generate analysis.