Ethereum's Activity Surges Despite Valuation Lag
Ethereum is a blockchain designed to run programs, allowing developers to deploy code and users to interact with that code. The network's native token, ETH, pays for the computing power behind every transaction.
In contrast to Bitcoin, which functions as a ledger for money, Ethereum works more like a computer where anyone can run a program on. Smart contracts are pieces of code that execute automatically once their conditions are met, without a company in the middle deciding whether to honor the deal.
Ethereum moved from mining to proof of stake in 2022, so holders now secure the network by locking up ETH as a bond rather than miners burning electricity to compete for blocks. More than a third of circulating ETH is currently staked this way, earning validators low single-digit yields.