Ether (ETH)
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, used to pay for transaction fees (gas) and as a programmable asset.
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, used to pay for transaction fees (gas) and as a pro...
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Sep 2026 · Verheidsscore: 50%
What is Ether (ETH)?
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, used to pay for transaction fees (gas) and as a programmable asset.
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ETH pays for computation (gas) on Ethereum and its L2s; it's staked to secure the network (proof-of-stake) in exchange for rewards. It is the unit of account for token prices and a widely used collateral asset in DeFi. EIP-1559 burns a port
Ether is the second-largest cryptocurrency and the fuel of the largest smart-contract ecosystem — its price, supply, and security directly affect all of DeFi and Web3 built on Ethereum. Its transition to proof-of-stake (The Merge, 2022) cut
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1. What Is Ether
Ether (ETH) is the native cryptocurrency of the Ethereum network — used to pay transaction fees (gas), secure the network via staking, and serve as the base unit of the Ethereum economy.
2. How It Works
ETH pays for computation (gas) on Ethereum and its L2s; it's staked to secure the network (proof-of-stake) in exchange for rewards. It is the unit of account for token prices and a widely used collateral asset in DeFi. EIP-1559 burns a portion of fees, making ETH mildly deflationary during high usage.
3. Why It Matters
Ether is the second-largest cryptocurrency and the fuel of the largest smart-contract ecosystem — its price, supply, and security directly affect all of DeFi and Web3 built on Ethereum. Its transition to proof-of-stake (The Merge, 2022) cut energy use ~99.95% and established ETH staking as a major yield market.
4. Key Facts
- ETH supply is uncapped but issuance is burned/fee-adjusted
- Staking APR typically 3-7%
- ETH is the dominant DeFi collateral
- Gas is paid exclusively in ETH
5. Related Concepts
- ethereum
- gas-price
- proof-of-stake
- staking-reward
Frequently Asked Questions
What is Ether (ETH)?
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain, used to pay for transaction fees (gas) and as a programmable asset.
How does Ether (ETH) work?
Ether (ETH) is the native cryptocurrency of the Ethereum network — used to pay transaction fees (gas), secure the network via staking, and serve as the base unit of the Ethereum economy. ETH pays for computation (gas) on Ethereum and its L2s; it's staked to secure the network (proof-of-stake) in ex
Why does Ether (ETH) matter in Web3?
- gas-price - proof-of-stake - staking-reward