What is Ethereum (ETH)?
Ethereum is a programmable blockchain launched in 2015 by Vitalik Buterin and others. Unlike Bitcoin, Ethereum supports smart contracts β self-executing code that powers decentralized applications (dApps), DeFi protocols, NFTs, and stablecoins. In 2022 Ethereum transitioned from proof-of-work to proof-of-stake (the "Merge"), reducing energy use by ~99% and introducing native ETH staking yields.
Why it matters for investors
Ethereum is the settlement layer for most of the crypto economy. The majority of stablecoin volume (USDC, USDT), DeFi total value locked, and NFT activity runs on Ethereum or its Layer 2 rollups. ETH is also a yield-bearing asset via staking (typically 3-5% annualized), making it more comparable to a productive asset than Bitcoin.