Interesting facts and statistics about ETH

What is Ethereum?

The Ethereum blockchain is open-source and decentralized, which allows for the development of smart contracts and decentralized apps. It was first proposed in 2013 by Vitalik Buterin, a Canadian-Russian programmer, and officially launched in 2015. Ethereum is different from Bitcoin, the first and largest cryptocurrency, because it has a built-in programming language that allows developers to build and deploy their decentralized applications on the Ethereum blockchain. This has led to the creation of a wide range of DeFi applications and other dApps that are built on top of the Ethereum blockchain.

Unlike Bitcoin, which was primarily designed as a digital currency, Ethereum was created with the goal of providing a platform for the development of decentralized applications. To do this, Ethereum introduced the concept of "smart contracts," which are self-executing contracts with the terms of the agreement directly written into code. These smart contracts can automate various processes, such as the transfer of assets or the execution of financial transactions.

The native cryptocurrency of the Ethereum network is Ether (ETH), which is used to pay for transactions and computational services on the network. Moreover, unlike Bitcoin, which has a hard cap of 21 million coins, there is no maximum supply for Ether. Instead, the Ethereum network is designed to produce new Ether at a steady rate, with the rate of production decreasing over time.

Ethereum used to have a consensus algorithm called Proof of Work (PoW), which is similar to the one used by Bitcoin, but it has now transitioned to a Proof-of-Stake (PoS) consensus algorithm. In PoW, miners compete to solve complex mathematical problems in order to validate transactions and create new blocks on the blockchain. This process is resource-intensive and requires a significant amount of computing power.

Ethereum's smart contract functionality also enables the creation of decentralized autonomous organizations (DAOs), which are organizations that are run by code rather than by people. DAOs operate on the Ethereum blockchain and are governed by their members, who use their ETH holdings to vote on proposals and make decisions.

Key information about Ethereum (Ethereum 2.0)

Ethereum 2.0, also known as Serenity, is a long-awaited upgrade to the Ethereum network that aims to improve its scalability, security, and sustainability. To better paint the picture of ETH 2.0’s prospects, the experts at TU have compiled some critical facts about Ethereum 2.0:

Ten figures about ETH

Here are 10 key figures about ETH that can be vital information for any enthusiast:

1. Market share: Ethereum currently holds the second largest market share among all cryptocurrencies, with a market capitalization of over $140 billion as of January 2023. (source: Nerdwallet)

2. TVL amount: The total value locked (TVL) in Ethereum-based DeFi protocols is close to $26.77 billion (source: defillama) as of January 2023. This represents the amount of money blocked by users in these protocols.

3. The largest startups on the ETH blockchain: Some of the most prominent startups built on the Ethereum blockchain include MakerDAO, Uniswap, and Compound.

4. Commission within the network: Transactions on the Ethereum network require the payment of a small fee, called "gas," to incentivize miners to process the transaction. The price of gas varies depending on network demand. On average, the transaction fee on the Ethereum network is around 3 Gwei ($0.09)

5. The number of forks and their essence: There have been several forks of the Ethereum blockchain, the most notable being Ethereum Classic (ETC) and Ethereum Classic Vision (ETCV). These forks were created as a result of disagreements within the Ethereum community.

6. Average Staking Rate: The average staking rate for Ethereum 2.0 is currently around 4% (source: stakingrewards.com). Staking is the process of holding a certain amount of Ethereum in a wallet to help secure the network and earn rewards.

7. The amount of money on the 10 largest wallets (in USD and %): As of July 28, 2022, the most prominent holders of Ethereum encompass an ETH2 deposit smart contract, a Wrapped Ether smart contract, crypto exchanges Kraken and Binance, and two unacknowledged wallet addresses. The leading holder, an ETH2 deposit smart contract, held over 13 million coins or nearly 11% of ETH's circulating supply. The second leading holder was a Wrapped Ether smart contract with 4 million ETH (3.5% of the circulating supply). Finally, Crypto exchanges Kraken and Binance held the third and fourth-highest amounts of ETH.

8. How many Ethereum tokens are there: As of Jan 2023, there are around 122,373,866 ETH in circulation (source: coinmarketcap)

9. Transactions Per Second (TPS): Currently, Ethereum can process around 30 transactions per second (source: Analytics Insight), although this is expected to increase with the upcoming upgrades in Ethereum 2.0.

10. Active ETH crypto wallets: According to a recent report, the total number of active Ethereum wallets reached an all-time high in 2022. The report also found that around 3.9 million active wallets are holding at least 0.1 ETH, which is equivalent to about $312 in fiat currency. Additionally, Ethereum investors have increased by 10% since 2021.

Ten facts about ETH

Apart from notable figures, the TU experts have also curated key facts about ETH that better explain the story behind the token:

1. Ethereum was financed through crowdfunding.

Ethereum was initially financed through a crowdfunding campaign in 2014, where participants could buy Ether (ETH), the native cryptocurrency of the Ethereum network, in exchange for Bitcoin. This campaign was managed by the Ethereum Foundation, a non-profit organization that maintains and develops the Ethereum platform. This early funding helped establish the Ethereum network and develop its technology.

2. Test networks named after subway stations

Ethereum has multiple testnets that developers use to test and experiment with their applications before deploying them on the main Ethereum network. These testnets are named after metro stations such as Ropsten, Kovan, and Rinkeby, which makes it easy for developers to identify and use the appropriate testnet for their needs.

3. Major financial institutions and technology companies utilize Ethereum-based applications.

Many banks and technology giants have shown interest in the Ethereum platform. For example, the Enterprise Ethereum Alliance, a group of companies working on Ethereum-based solutions, has over 200 members, including major companies like Microsoft, JPMorgan, and Intel. This may suggest that Ethereum is not just a speculative investment but a valuable technology for the future.

4. The Ethereum platform is open-source.

Ethereum is an open-source platform, which means that its source code is publicly available and can be modified and distributed by anyone. This allows developers to create and deploy decentralized applications (dapps) on the Ethereum network without needing permission from any central authority. This feature makes Ethereum unique and will enable it to be used in various forms of decentralized applications.

5. Ethereum has a strong brand and reputation.

Ethereum has built a strong brand and reputation in the cryptocurrency and blockchain space and is often considered one of the most promising blockchain platforms. This has helped to increase its adoption and usage among businesses, developers, and investors. In addition, this reputation allows Ethereum to be seen as a valuable investment and a safe technology to build on.

6. A large number of initial coin offerings take place on the Ethereum network.

Ethereum's blockchain is the most popular platform for Initial Coin Offerings (ICOs). This is because Ethereum's smart contract functionality allows for the creation and issuance of custom tokens, which is a key component of many ICOs.

7. Ethereum’s DAO incident and subsequent theft

In 2016, a decentralized autonomous organization (DAO) built on the Ethereum blockchain was hacked, resulting in the theft of 3.6 million ETH (worth around $50 million at the time). This incident highlighted the need for improved security measures on the Ethereum blockchain. Furthermore, it led to the creation of Ethereum Classic (ETC), a separate blockchain that retained the state of the original Ethereum blockchain before the hack.

8. Scaling issues are a significant concern for Ethereum.

Despite the planned upgrades, Ethereum still struggles with high transaction times and gas fees. This is because the current Ethereum blockchain can only process around 30 transactions per second, which is not enough to handle the increasing number of transactions on the network.

9. The influence of anime on Ethereum culture.

Ethereum has a strong community, and its use cases are diverse. One of them is the use of Ethereum by the anime community to buy and trade digital collectibles, such as rare anime characters. This is made possible by the use of non-fungible tokens (NFTs) on the Ethereum blockchain.

10. The Ethereum Virtual Machine (EVM)

The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts on the Ethereum network. It is a virtual machine that executes code on a blockchain network and is responsible for managing the state of the network. The EVM makes it possible for developers to write smart contracts in various programming languages, such as Solidity, Vyper, and Bamboo.

Top 10 facts about Ethereum price

1. Maximum value: The all-time high for the price of ETH was $4,860 in November 2021. (source: Live Coin Watch)

2. Minimum value: The all-time low for the price of ETH was $0.42 on October 21, 2015

3. The fastest growth: In late 2020, the value of Ethereum (ETH) experienced a significant increase, rising from around $730 to $4,000 by May 2021. This was followed by an even larger spike, reaching an all-time high of $4,800 in November of the same year.

4. In what year did ETH first reach $1000: Ethereum reached $1000 for the first time on January 4, 2018.

5. How the price has changed after the transition to the PoS algorithm: Ethereum (ETH) has not seen success in its transition from proof-of-work to proof-of-stake as initially hoped. The coin has dropped by 25% since the transition, following a market crash caused by the bankruptcy of the FTX exchange and the cancellation of its planned takeover by Binance. Despite a brief recovery in December, ETH continues to fluctuate in value.

6. How much would you earn if you bought ETH on January 1, 2016: Investors who purchased $1000 worth of Ethereum at the start of 2016 and held on to the cryptocurrency until 2018 could have potentially earned around $1 million from their investment. Had these investors chosen to sell at the peak of the market in 2021, they could have potentially earned a staggering $4.5 million.

7. Highest trading volume: On May 13, 2021, Ethereum (ETH) reached an all-time high in terms of trading volume, with a price point of $3,828

8. Correlation with Bitcoin: As of February 2022, the correlation coefficient between Ethereum price and Bitcoin price has increased to 0.902, indicating a stronger positive relationship between the two, where they tend to move in the same direction but not always with the same intensity.

9. All-Time Highest Market-Cap: On November 9, 2021, Ethereum had reached a peak in its market capitalization, reaching a total value of $571.67 billion.

10. ICO price of Ethereum: The price of ETH during its ICO phase was $0.31

Ethereum (ETH) has already undergone a significant upgrade with the transition to Ethereum 2.0 or "The Merge," which has improved the scalability and security of the network. This has set the stage for continued growth and adoption of the cryptocurrency. Many experts believe that the potential of the Ethereum platform, which includes smart contracts and decentralized finance (DeFi) applications, will drive its value higher in the future. In addition, the increasing number of businesses and organizations exploring the use of blockchain technology also bodes well for the future of ETH. Overall, the outlook for Ethereum's growth looks promising, and it is expected to continue to be a major player in the cryptocurrency market.

Should I buy ETH now?

According to experts, anyone considering an investment in Ethereum should have the knowledge of the following factors:

1. Market Position: Ethereum (ETH) remains one of the top cryptocurrencies in the market, currently holding the second spot in terms of market capitalization. This solidifies its position as a viable long-term investment option in the crypto market.

2. Ethereum 2.0: The transition to Ethereum 2.0, also known as "The Merge," has addressed many of the scalability issues that were plaguing the network. This has made the platform more efficient and ready for mass adoption in the future.

3. Decentralized Applications (dApps): Ethereum is the leading platform for developing decentralized applications, or dApps. This means that it has a wide range of use cases and a strong developer community, which can drive growth and adoption in the future.

4. Long-term Potential: With its strong market position, improved scalability, and wide range of use cases, Ethereum has the potential for long-term growth.

5. Risk: As with any investment, there is always a level of risk involved. The cryptocurrency market is known for its volatility, so it's essential to have a clear understanding of the risk involved before investing. It's also important to diversify your investment portfolio, not to put all your eggs in one basket.

Overall, while it's impossible to predict the future performance of Ethereum, it remains a strong player in the cryptocurrency market with solid long-term potential. But, of course, it's always important to do your own research and consider your personal investment goals and risk tolerance before making any investment decisions.