What is ETH? A Complete Overview of Ethereum – The Beating Heart of Web3

In the world of cryptocurrency, few assets have shaped the digital future as profoundly as Ethereum (ETH). Often called the “backbone of Web3,” Ethereum is not just a cryptocurrency—it’s a decentralized infrastructure powering everything from DeFi and NFTs to DAOs and blockchain gaming. But what exactly is ETH, how does it work, and why is it considered one of the most valuable and innovative digital assets today?

What is ETH?

ETH is the native token of the Ethereum blockchain—a decentralized, open-source network designed to support smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily serves as a store of value, Ethereum acts as a decentralized world computer, enabling developers to build censorship-resistant apps without intermediaries.

ETH is used to pay gas fees for transactions on the Ethereum network, reward validators in the staking system, and serve as collateral in thousands of DeFi protocols. Its utility spans across nearly every use case in the decentralized internet.

Ethereum vs. Bitcoin: What Makes ETH Different?

While both Bitcoin and Ethereum are cryptocurrencies, their purposes are fundamentally different. Bitcoin was designed to be “digital gold”—scarce, secure, and simple. Ethereum, on the other hand, is flexible, programmable, and serves as the foundation for Web3.

Ethereum allows the creation of new tokens (ERC-20), NFTs (ERC-721), decentralized organizations, and trustless financial services. In this way, ETH functions more like digital fuel for the decentralized internet rather than just a digital currency.

A Brief History of Ethereum

Ethereum was proposed by Vitalik Buterin in 2013 and officially launched in July 2015. Since then, it has undergone numerous network upgrades, including Byzantium, Istanbul, and London. One of the most transformative events was The Merge in 2022, which transitioned Ethereum from Proof of Work (PoW) to Proof of Stake (PoS).

This shift significantly reduced energy consumption by 99.95% and introduced staking, where ETH holders can earn passive rewards by helping secure the network. It marked Ethereum’s evolution into a more efficient, scalable, and eco-friendly blockchain.

How Does ETH Work?

Every time someone makes a transaction or interacts with a dApp on Ethereum, they pay a gas fee in ETH. These fees compensate validators who process and confirm the transactions. With PoS, users can stake their ETH to become validators and earn yield—making ETH both a utility token and a yield-generating asset.

Currently, over 30 million ETH are staked across the network, a powerful indicator of investor confidence and long-term belief in Ethereum’s role in Web3.

Why Is ETH So Important to Web3?

Ethereum dominates the Web3 landscape, hosting over 88% of active dApps and smart contracts as of mid-2025. It’s the infrastructure layer behind many major blockchain categories:

• DeFi: ETH powers protocols like Uniswap, Aave, and MakerDAO as core collateral.
• NFTs: Leading collections such as CryptoPunks, Bored Ape Yacht Club, and Azuki are built on Ethereum’s ERC-721 standard.
• DAOs: Governance frameworks like Gitcoin and Aragon are entirely Ethereum-based.
• Layer 2 Expansion: Networks like Arbitrum, Optimism, and zkSync use Ethereum as their settlement layer while improving speed and reducing costs.

Ethereum’s programmable nature makes it uniquely suited for innovation in decentralized finance, art, gaming, social media, and governance.

ETH Price Today and Market Outlook

As of June 4, 2025, ETH is trading at approximately $2,641.35, with daily price movement ranging between $2,592.76 and $2,643.81. This range places ETH near a key support level around $2,575, with resistance near $2,705. Compared to its April 2025 high of $3,400, ETH is currently discounted by over 20%—a potential opportunity for long-term investors looking to enter or accumulate before the next bullish phase.

Where to Buy ETH? Trade Ethereum Seamlessly on Gate

Gate offers one of the most secure and efficient platforms to buy, trade, and stake ETH. Users can fund their accounts using USDT, BTC, or fiat currencies, then purchase ETH instantly with deep liquidity and minimal fees.

With integrated features like ETH staking, Launchpad events, Layer 2 token access, and a built-in Web3 wallet, Gate allows you to do everything—from investing to interacting with dApps—without ever leaving the platform.

Gate’s all-in-one ecosystem makes it the ideal gateway to Ethereum and Web3 for both beginners and professionals.

Conclusion

Ethereum is more than a cryptocurrency—it’s the infrastructure of the decentralized web. Its robust smart contract capabilities, massive developer community, growing adoption across industries, and yield-generating staking model make ETH one of the most compelling assets in the market. Whether you’re looking for a long-term investment, want to participate in Web3, or seek yield through staking, ETH is a powerful choice—and Gate is the smartest place to start. Create your Gate account today, buy ETH at market-leading rates, stake your assets, and join the growing global movement toward a decentralized digital economy.