About Ethereum (ETH)

What is Ethereum (ETH) in simple terms?

Ethereum is the world’s second-largest cryptocurrency and the go-to blockchain for smart contracts and decentralized apps. Launched in 2015 by Vitalik Buterin and others, it turned the idea of crypto from just digital money into a platform for programmable finance, NFTs, and more. You might wonder why it matters—because ETH isn’t just a coin, it’s the fuel for Web3.

How does ETH’s tokenomics work?

ETH has no fixed supply cap, unlike Bitcoin. About 83.33% of tokens went to ICO buyers in 2014, while the foundation and developers held roughly 16.67%. Since 2021, part of transaction fees (paid in ETH) is burned, offsetting new issuance from staking rewards. This balance means Ethereum can be inflationary or even deflationary depending on network activity.

Does Ethereum have vesting or token unlock schedules?

Not really. ETH doesn’t follow the vesting playbooks you see in newer tokens. ICO participants got their coins immediately in 2015, and the foundation’s allocation was liquid from day one. Today, supply dynamics shift through ongoing staking rewards and fee burning, not unlock cliffs. The only “unlock” events are protocol-driven changes, not investor vesting.

How did Ethereum raise money at the start?

Ethereum pioneered the ICO model in 2014, raising $18.66M USD by selling 60M ETH (83.33% of supply) at an average price of $0.311 per ETH. Buyers received their tokens with no lockups, and the sale delivered an eventual ROI of over 13,000x in USD terms. Unlike modern VC-backed projects, Ethereum’s fundraising was a single, community-driven event.

What major activities has Ethereum done beyond the ICO?

Worth noting, Ethereum’s timeline is full of landmarks: the 2016 DAO hack and resulting hard fork, the 2022 Merge to Proof-of-Stake (slashing energy use by 99%), and the 2024 Dencun upgrade improving scalability. More recently, in 2025 the Foundation began allocating ETH to DeFi protocols—quite a shift from its traditional treasury management.

Where can ETH be traded?

Practically everywhere. On centralized exchanges like Binance, Coinbase, Kraken, and Bybit, ETH/USDT and ETH/USD are the deepest pairs. On decentralized exchanges, ETH is the base asset—Uniswap and Curve thrive on it. Whether you’re trading against BTC, stablecoins like USDT/USDC/DAI, or fiat pairs like USD and EUR, ETH’s liquidity is second only to Bitcoin.

What are the main use cases of Ethereum?

So why does Ethereum matter? Because it powers nearly everything in crypto beyond pure payments: DeFi lending and trading, NFTs for digital ownership, DAOs for community governance, and Layer 2 rollups riding on top. ETH itself acts as gas for transactions and as stake for validators. It’s the backbone of a $50B+ DeFi ecosystem.

What’s on Ethereum’s roadmap?

Ethereum upgrades come in waves. The Merge is done, Dencun shipped, and Pectra landed in 2025. Next comes Fusaka (focused on scaling) and long-term milestones like Glamsterdam. Vitalik’s roadmap pillars—Surge, Scourge, Verge, Purge, Splurge—guide the journey toward faster, cheaper, and more secure infrastructure. In short, the path is long but mapped.

What risks should ETH users consider?

Ethereum isn’t risk-free. Smart contract hacks have drained millions. Staking concentration (Lido, for example) raises centralization concerns. Regulators remain undecided on DeFi oversight despite spot ETH ETF approvals. And gas fees can spike during congestion. Still, Ethereum’s developer depth and upgrade resilience keep it at the core of crypto infrastructure.

Has Ethereum done airdrops like other projects?

No classic airdrops. ETH’s distribution happened during the ICO, and since then activities have centered on grants, upgrades, and community events. Instead of airdropping tokens, the Foundation supports developers and projects with funding. Think of it as building the ecosystem’s rails rather than chasing short-term hype campaigns.