Ethereum Price(ETH)

Aside from Bitcoin, Ethereum (ETH) is the most closely followed blockchain project. As the world's second-largest cryptocurrency, it is not only a digital currency but also a decentralized platform that supports a wide range of applications. From decentralized finance (DeFi) and NFTs to gaming and the metaverse, many well-known blockchain applications operate on Ethereum.

What Is Ethereum?

Ethereum was launched in 2015 and is designed to support a wide range of applications and services, including gaming and financial products. Put simply, if BTC is considered "digital gold," Ethereum functions as a "global computer" capable of running diverse blockchain applications. Developers can build smart contracts on Ethereum, enabling decentralized applications (dApps) to operate automatically without intermediaries.

Today, Ethereum has become the core infrastructure for DeFi, NFTs, DAOs, and other sectors. Its native token, ETH, is not only used to pay network fees (Gas) but is also widely applied in investment, staking, and within the broader ecosystem.

Who Created Ethereum?

Ethereum was proposed and created in 2013 by Vitalik Buterin, a Canadian programmer of Russian origin. Inspired by Bitcoin, Vitalik envisioned a platform that could support smart contracts and decentralized applications. In 2014, he initiated a crowdfunding campaign, and the Ethereum network officially went live in 2015.

How Does Ethereum Work?

Ethereum is built around several core components: the blockchain, smart contracts, the Ethereum Virtual Machine (EVM), and transaction fees.

- Blockchain: At its foundation, Ethereum is a distributed ledger maintained by thousands of nodes worldwide, ensuring that data cannot be altered.

- Smart contracts: Ethereum's most revolutionary feature, smart contracts allow developers to set predefined conditions. Once these conditions are met, the contract executes automatically without human intervention.

- Ethereum Virtual Machine (EVM): Often described as the brain of Ethereum, the EVM is a virtual computer made up of all nodes on the network. When developers deploy smart contracts or applications, the EVM executes the programs and ensures they run according to the rules.

- Transaction fees: Each operation on Ethereum (for example, sending ETH) requires a small fee known as Gas, which is denominated in Gwei, a fractional unit of ETH.

Bitcoin vs. Ethereum: What's the Difference?

Bitcoin and Ethereum have entirely different goals and functions:

- Positioning: BTC is primarily a digital currency focused on value storage, while Ethereum is an application platform where ETH serves both as currency and as fuel for the ecosystem.

- Supply: BTC's supply is capped at 21 million coins. ETH has no fixed supply limit, but since the EIP-1559 upgrade in 2021, a burn mechanism has been introduced, leading to a trend of reduced circulation.

- Functionality: BTC has a single function, mainly for transfers and as a store of value. Ethereum, by contrast, offers extensive functionality, supporting DeFi, NFTs, GameFi, and a wide range of ecosystem applications.

- Consensus mechanism: Bitcoin still uses Proof of Work (PoW). Ethereum, after completing "The Merge" in 2022, fully transitioned to Proof of Stake (PoS), which is more energy-efficient and scalable.

How to Buy Ethereum

The process of buying ETH on MEXC or other trading platforms is similar to purchasing BTC:

- Sign up for an account and complete KYC verification

- Deposit funds (bank cards, credit cards, and other methods are supported)

- Search for ETH and enter the amount you wish to purchase

- Confirm the order, and you will own your ETH

How Much Is Ethereum Worth?

The price of ETH is highly volatile, often moving like a roller coaster. It has risen from just a few dollars to an all-time high of nearly $5,000. Today, its market capitalization firmly ranks second among all cryptocurrencies, behind only BTC.

Factors driving the price of ETH include:

- Growth of ecosystems such as DeFi and NFTs

- Ethereum upgrades (such as ETH 2.0 and Layer-2 scaling solutions)

- Institutional capital and the introduction of Ethereum ETFs

- Global policy and regulatory developments

You can track ETH's real-time price movements and trading volume directly on the MEXC platform.

Is Ethereum a Good Investment?

Many experts and institutions consider Ethereum to have long-term investment value:

- Diverse use cases: ETH is not only a currency but also the fuel that powers the entire Web3 ecosystem.

- Ecosystem growth: Most DeFi and NFT projects rely on Ethereum.

- Increasing scarcity: With EIP-1559, ETH has gained a deflationary feature as part of the transaction fees are burned.

- Institutional recognition: With the introduction of Ethereum ETFs, more institutions can now legally invest in ETH.

How to Mine Ethereum

It is important to note that after the 2022 upgrade known as The Merge, Ethereum no longer supports mining, having shifted from Proof of Work (PoW) to Proof of Stake (PoS).

- Before 2022: Users mined ETH with graphics cards to earn rewards.

- After 2022: ETH can be earned through staking. Users deposit ETH into network nodes to help validate transactions and receive rewards in return.

What is an Ethereum ETF?

As the Ethereum ecosystem matures, Ethereum ETFs (Exchange-Traded Funds) have been introduced in several countries. An Ethereum ETF is a fund that tracks the price of ETH. It allows investors to gain exposure to ETH's price movements without the need to manage cryptocurrency wallets or exchange accounts. Investors can purchase shares of an Ethereum ETF and trade ETH through familiar channels such as brokerage accounts.

Advantages of an ETF include:

- Investors can access ETH through traditional securities accounts

- No need to manage wallets or worry about security risks

- Facilitates the inclusion of Ethereum in institutional investment portfolios

The introduction of Ethereum ETFs marks a step toward broader acceptance of ETH in mainstream financial markets.

What Is Etherscan?

Etherscan is a blockchain explorer that provides access to public data on the Ethereum blockchain, including transactions, smart contracts, and addresses. All interactions on Ethereum are transparent. By entering a transaction hash (transaction ID), users can view all related activities, including tokens, smart contracts, and wallet addresses.

Why Does Ethereum Rise or Fall?

ETH's price fluctuations are influenced by several factors:

- Positive news: Successful Ethereum upgrades, ETF approvals, institutional buying

- Negative news: Regulatory crackdowns, hacking incidents, high gas fees

- Market cycles: ETH follows a cycle similar to Bitcoin's four-year pattern, but its volatility is amplified by market drivers such as DeFi, NFTs, and Layer-2 solutions.

On MEXC, you can track both short-term and long-term ETH trends using real-time charts and market analysis tools.