Ethereum
Last Updated: October 30, 2026
Quick Answer: Ethereum is a decentralized blockchain network and software platform that runs smart contracts, programs that execute automatically, and is powered by its native cryptocurrency, ether (ETH). It launched on July 30, 2015, and has run on proof of stake since The Merge in September 2022. On October 30, 2026, ETH was the second largest cryptocurrency, with a market cap of about $272 billion, according to CoinGecko.
Key Takeaways
- Ethereum is “a decentralized blockchain network and software development platform, powered by the cryptocurrency ether (ETH),” according to ethereum.org
- ETH pays transaction fees (gas) and secures the network: about 43.9 million ETH, roughly 35% of supply, was staked on October 30, 2026 (ethereum.org)
- Ethereum hosted about $43.2 billion, or about 45%, of all value locked in decentralized finance, and about $141 billion in stablecoins on October 30, 2026 (DefiLlama)
- Recent upgrades include Dencun (March 2024), Pectra (May 2025) and Fusaka (December 3, 2025); the next, Glamsterdam, had no date on ethereum.org as of October 30, 2026
- ETH has no fixed maximum supply; part of every transaction fee is burned
How Ethereum Works
Ethereum works like a shared global computer. Anyone can deploy a smart contract, and every node runs it the same way, so the result does not depend on any one company.
Ether and gas. Every action on Ethereum costs gas, which ethereum.org defines as “the unit that measures the amount of computational effort required to execute specific operations.” Fees are paid in ETH. Since the London upgrade on August 5, 2021, part of each fee, the base fee, is “burned,” removing it from circulation, according to ethereum.org.
Proof of stake. Ethereum switched from mining to proof of stake on September 15, 2022, in an upgrade known as The Merge. Validators deposit 32 ETH, time is split into 12 second slots, and a block is final once validators holding at least two thirds of staked ETH vote for it, according to ethereum.org. Ethereum says the change made it “over 99.988% more energy efficient” than Bitcoin. Holders without 32 ETH can take part through pools or exchanges; see staking.
Layer 2 networks. Rollups process transactions off the main chain and post the data back to Ethereum. Upgrades since 2024 have focused on making that data cheaper.
Ethereum Upgrade Timeline
| Upgrade | Date (UTC) | What changed |
|---|---|---|
| White paper | November 27, 2013 | Vitalik Buterin publishes the Ethereum white paper |
| Frontier | July 30, 2015 | Network launches |
| London | August 5, 2021 | EIP-1559 fee reform; base fee burned |
| The Merge | September 15, 2022 | Switch from proof of work to proof of stake |
| Shapella | April 12, 2023 | Staked ETH can be withdrawn |
| Dencun | March 13, 2024 | EIP-4844 lowers data costs for layer 2 rollups |
| Pectra | May 7, 2025 | Staking improvements and EIP-7702 for regular accounts |
| Fusaka | December 3, 2025 | PeerDAS (EIP-7594) scales blob data for layer 2s |
Source: ethereum.org. According to ethereum.org, PeerDAS lets each full node hold only part of the blob data, “enabling blob scaling resulting in more scale with smaller fees for layer 2s.”
Ethereum in 2026: Key Figures
On October 30, 2026, ETH traded at about $2,226 on CoinGecko, with a market cap of about $272 billion and a supply of about 122.2 million ETH. That was about 55% below its all time high of about $4,954 on August 24, 2025, according to CoinMarketCap. ETH accounted for about 10.4% of the whole crypto market, according to CoinMarketCap’s global data.
Ethereum is the main home of decentralized finance. According to DefiLlama, applications on Ethereum held about $43.2 billion of the $95.6 billion locked in DeFi on October 30, 2026, and about $141 billion in dollar stablecoins circulated on the network, more than on any other chain.
ETH is also available through regulated funds. On May 23, 2024, the US Securities and Exchange Commission approved rule changes allowing eight spot ether exchange traded products to list, according to the order published in the Federal Register. One of them, the iShares Ethereum Trust, held about $7.36 billion in net assets on October 29, 2026, according to iShares.
Live prices are on our Ethereum price page, and model based scenarios are in our Ethereum price prediction.
Risks and Common Misconceptions
“Ethereum and ether are the same thing.” Ethereum is the network; ether (ETH) is its currency. People often say “Ethereum” for both.
“Ethereum 2.0 is a separate coin.” It is not. “Ethereum 2.0” and “Eth2” were older names for the proof of stake upgrades, and ethereum.org says the term “Eth2” has been deprecated. There is no “old ETH” or “new ETH,” and holders did not need to do anything at The Merge. According to ethereum.org, people claiming otherwise “are likely scammers.”
“ETH has a fixed supply like Bitcoin.” It does not. Validators earn newly issued ETH as rewards, while burned fees remove some from circulation, so the supply can rise or fall.
Other risks include smart contract bugs (in 2016, an exploit drained 3.6 million ETH, then worth about $60 million, from a project called The DAO, according to ethereum.org), high fees when the main network is busy, and the risks of the layer 2 networks and staking providers many users rely on. ETH’s price can swing widely.
Related Terms
Frequently Asked Questions
What is Ethereum in simple terms?
Ethereum is a blockchain that can run programs, not just record payments. Developers use it to build applications for lending, trading, stablecoins, games and digital collectibles that run without a central company. Its own currency, ether (ETH), pays the fees for every transaction and program. Ethereum launched in 2015 and is the second largest crypto network by market value.
Who created Ethereum?
Ethereum was proposed by programmer Vitalik Buterin in a white paper dated November 27, 2013, according to ethereum.org, and built with a group of early developers. Ether went on sale in a 42 day public sale starting July 22, 2014, and the network launched on July 30, 2015. Today it is maintained by many independent developer teams rather than one company.
What is the difference between Ethereum and Bitcoin?
Bitcoin was built mainly as digital money with a fixed limit of 21 million coins and uses proof of work mining. Ethereum is a programmable platform that runs smart contracts and many other tokens, uses proof of stake, and has no fixed supply cap. Bitcoin is the largest cryptocurrency by market value, and Ether is the second largest.
What was The Merge?
The Merge was the upgrade that switched Ethereum from proof of work mining to proof of stake on September 15, 2022, according to ethereum.org. Miners were replaced by validators who lock up ETH to secure the network. Ethereum says the change made it over 99.988% more energy efficient than Bitcoin. Holders did not need to do anything.
What is the next Ethereum upgrade?
After Fusaka, which went live on December 3, 2025, the next planned upgrade is called Glamsterdam. As of October 30, 2026, ethereum.org listed it as the next upgrade without a confirmed date. Upgrade dates are set by Ethereum’s core developers and can move, so the official date appears on ethereum.org only once it is confirmed.
Data sources: ethereum.org (history, staking, proof of stake, gas and Fusaka pages, October 30, 2026), CoinGecko (October 30, 2026), CoinMarketCap (ETH all time high; global data October 30, 2026, 03:48 UTC), DefiLlama (October 30, 2026), US Securities and Exchange Commission Release No. 34-100224 (May 23, 2024), iShares (October 29, 2026).