Ethereum's Growing Activity Falls Short of Expected Value Boost

Ethereum's value has not kept pace with its growing activity, raising questions about how it works and differs from Bitcoin.

The blockchain was designed to run programs, unlike Bitcoin, which serves as a ledger for money. Ethereum's network went live in July 2015, created by Vitalik Buterin and co-founders.

The platform allows developers to deploy code, users to call that code, and the native token ETH to pay for computing power behind every transaction. However, despite increasing activity across its network, ETH has lost ground compared to Bitcoin's price.

Ethereum uses proof of stake since 2022, where validators are selected based on how much ETH they lock up, unlike Bitcoin, which relies on mining. This difference also shapes the networks' evolution and design differences have produced varying long-term performance results. Over five years, Bitcoin is up more than 55%, while Ethereum is down nearly 30%.