$ETH ### **$ETH (Ethereum) – Key Insights**

**Ethereum ($ETH)** is the second-largest cryptocurrency by market cap, powering decentralized applications (dApps), smart contracts, and DeFi ecosystems. Unlike Bitcoin, Ethereum focuses on **programmable blockchain technology**, enabling innovations like NFTs, DAOs, and layer-2 scaling solutions.

#### **Why $ETH Matters:**

✅ **Smart Contracts** – Self-executing agreements without intermediaries.

✅ **DeFi & NFTs** – The backbone of decentralized finance and digital collectibles.

✅ **Ethereum 2.0** – Transitioned to **Proof-of-Stake (PoS)**, reducing energy use by ~99%.

✅ **EIP-1559** – Introduced fee burning, making ETH more deflationary.

#### **Risks:**

⚠️ **High Gas Fees** – Network congestion can spike transaction costs.

⚠️ **Competition** – Rivals like Solana & Cardano challenge its dominance.

**Future Outlook:** Ethereum remains a leader in blockchain innovation, but scalability upgrades (like sharding) will determine its long-term success.