$ETH Ethereum is the second-largest cryptocurrency after Bitcoin and is considered the backbone of the decentralized blockchain ecosystem. Unlike Bitcoin, which mainly serves as a store of value, Ethereum is a smart contract platform that powers thousands of decentralized applications (dApps).
ETH is widely used in DeFi (Decentralized Finance), NFT marketplaces, blockchain gaming, and Web3 projects. This real-world utility gives Ethereum strong long-term value and continuous demand. Most new blockchain innovations are still built on Ethereum or are compatible with it.
After moving to Proof of Stake (Ethereum 2.0), Ethereum became more energy-efficient and introduced staking, allowing holders to earn passive income. This upgrade also reduced ETH supply growth, making it more attractive for long-term investors.
Ethereum’s price usually follows Bitcoin’s overall trend but often shows stronger percentage moves during bullish markets. In bull runs, ETH tends to outperform Bitcoin due to higher usage and network activity.
However, Ethereum faces challenges such as high gas fees during heavy usage and competition from faster blockchains like Solana and Avalanche. Despite this, Ethereum remains the most trusted and widely adopted smart contract blockchain.
Overall, Ethereum is considered a strong long-term investment, suitable for investors who want exposure to blockchain technology beyond just digital money.
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