#EthereumSecurityInitiative

Ethereum's native cryptocurrency, ether (ETH), serves multiple purposes within its ecosystem. Primarily, you use ETH to pay transaction fees, known as "gas," when executing smart contracts or conducting transactions on the Ethereum network. Additionally, ETH acts as a store of value and a medium of exchange, similar to traditional currencies.

You can trade Ethereum on various cryptocurrency exchanges, such as the KuCoin Spot Market, where you can buy or sell ETH against other cryptocurrencies like USDT.

Beyond these uses, ETH grants you access to decentralized finance (DeFi) applications, enabling activities like lending, borrowing, and earning interest without intermediaries. Moreover, ETH is instrumental in the creation and exchange of non-fungible tokens (NFTs), representing ownership of unique digital assets.

What Is Ethereum Tokenomics?

Ethereum's tokenomics encompass the economic principles governing its native cryptocurrency, ether (ETH). Initially, Ethereum did not have a fixed supply limit, leading to concerns about potential inflation. However, with the implementation of the London Hard Fork in August 2021, Ethereum introduced a mechanism that burns a portion of transaction fees, effectively reducing the circulating supply and potentially making ETH deflationary over time.

Ethereum does not have a maximum supply limit; its total supply is theoretically infinite. As of January 2025, the circulating supply is approximately 120.51 million ETH.