OG Memoirs: My Eight Years with Ethereum - Exploring What is the Hottest Crypto

Ethereum celebrates its 10th anniversary, marking a decade of continuous innovation and evolution in the blockchain space. This personal memoir chronicles an eight-year journey through Ethereum's transformative phases, from its earliest days to its current position as one of the hottest cryptocurrencies in the digital asset market.

Era 1: ICO Era

The Initial Coin Offering (ICO) era, spanning 2017-2019, represented Ethereum's first major breakthrough in demonstrating practical utility beyond basic cryptocurrency functionality. During this period, Ethereum's smart contract capability revolutionized token creation and fundraising, establishing it as what many considered the hottest crypto project of its time.

The introduction of smart contracts provided a groundbreaking innovation that distinguished Ethereum from earlier cryptocurrencies like Bitcoin, Ripple, and Litecoin. This technology simplified the token issuance process dramatically. Previously, launching a new cryptocurrency required modifying existing code, securing miner support, and maintaining network stability—a complex and resource-intensive undertaking that deterred many potential projects.

Ethereum's smart contracts democratized token creation, enabling anyone to issue tokens with minimal technical expertise. This accessibility triggered an unprecedented wave of ICOs, with multiple public offerings occurring daily. The mechanics were straightforward: participants sent Ethereum to smart contracts and received new tokens in return, often yielding returns ranging from 3x to 100x.

This explosive demand created a powerful supply-demand dynamic. The need to acquire Ethereum for ICO participation drove prices from 1,400 RMB to 1,400 USD within six months following China's September cryptocurrency regulations in 2017. However, this speculative bubble proved unsustainable.

The market correction began when prominent projects like Space Chain and Hero Chain broke their issue prices. Space Chain proposed launching blockchain nodes into space, while Hero Chain positioned itself as a Southeast Asian casino gambling chain. Their failures signaled the beginning of widespread ICO depreciation.

As ICO projects began liquidating their Ethereum holdings and participants realized losses, market sentiment reversed dramatically. Ethereum's price plummeted significantly by 2019, representing the valley of despair. Critics questioned whether Ethereum's utility extended beyond facilitating ICOs and whether it could maintain its status as a hot crypto asset.

Despite the skepticism, community members maintained faith in Ethereum's long-term vision. The ecosystem's commitment to technological advancement—including proof-of-stake, sharding, plasma, state channels, and zero-knowledge proofs—laid the groundwork for future innovation. This open-source, experimental approach enabled continuous trial and error, ultimately contributing to Ethereum's resilience and eventual success.

Era 2: DeFi Era

The Decentralized Finance (DeFi) era, spanning 2020-2022, marked Ethereum's renaissance and demonstrated its capability to support applications superior to traditional financial systems. This transformation began when Compound announced subsidies for depositors and borrowers, reigniting interest in what would become the hottest crypto trend of the period.

DeFi applications showcased Ethereum's true potential beyond speculative token offerings. These platforms offered lower borrowing costs and higher deposit interest rates than traditional financial institutions. Some programs even created situations where subsidies exceeded borrowing interest, causing negative effective interest rates that shocked the crypto community.

This innovation distinguished Ethereum from contemporary competitors focused on distributed storage or niche applications. Ethereum hosted genuinely useful applications that outperformed traditional alternatives, establishing itself as the premier platform for financial innovation.

The DeFi movement benefited from ICO-era foundations. Projects like EthLend, which evolved into AAVE, demonstrated that not all ICOs were mere speculation—some created lasting value and infrastructure.

DeFi protocols fundamentally altered Ethereum's supply-demand dynamics. Platforms like Uniswap and Sushiswap required substantial Ethereum liquidity pools, dramatically increasing demand. Liquidity providers could earn annual percentage rates exceeding 100% by depositing Ethereum and accepting impermanent loss risk.

This surge in demand drove Ethereum's price significantly higher, establishing records that reinforced its position as one of the hottest crypto assets. Many believed Ethereum would disrupt traditional finance entirely.

However, Ethereum faced unprecedented competition during this period. While DeFi originated on Ethereum, competing blockchains offered cheaper fees and faster performance. The term "noble chain" emerged as criticism rather than praise, highlighting Ethereum's high transaction costs compared to alternatives.

The DeFi boom ended abruptly when Luna's collapse—a Ponzi scheme whose failure triggered cascading effects throughout the ecosystem. Major institutions like certain prominent trading platforms and investment firms fell, effectively ending the DeFi summer and initiating a prolonged downturn.

Facing existential threats from competing chains offering significantly lower fees, Ethereum adopted an aggressive Layer 2 (L2) strategy. Rather than expanding Layer 1, Ethereum prioritized immediate solutions, even at the expense of mainnet prominence.

Numerous L2 solutions emerged: pioneering projects like Arbitrum, Optimism, and zkSync; institutional-backed chains like Base, Mantle, and various exchange-affiliated networks; derivative chains like Metis; innovative approaches like Taiko; and application-specific solutions like Uniswap's L2.

This strategy succeeded in retaining developers and users within the Ethereum ecosystem. While these resources migrated from the mainnet, they remained within the EVM (Ethereum Virtual Machine) ecosystem rather than benefiting competitors. The L2 strategy prevented major partners from launching independent chains, maintaining Ethereum's position as the common denominator.

Era 3: LST Era

The Liquid staking Token (LST) era, beginning in 2023, followed Ethereum's successful transition to Proof-of-Stake (PoS) consensus. The Shanghai upgrade enabled Ethereum withdrawals, marking the complete PoS transition and spawning numerous LST protocols that attracted attention as innovative crypto developments.

Platforms like Lido and EtherFi dominated total value locked (TVL) rankings, creating a new category of derivative products. LSTs represented staked Ethereum while maintaining liquidity, enabling holders to earn staking rewards while participating in DeFi protocols.

The LST ecosystem developed affiliated services, particularly recursive lending strategies. Platforms like EtherFi enabled recursive loans achieving over 10% Ethereum-denominated returns. These strategies required borrowing venues, making protocols like AAVE and Morpho major beneficiaries of LST-driven demand.

DeFi infrastructure facilitated LST growth, while LST protocols became DeFi's largest customers, creating symbiotic relationships between established and emerging protocols.

However, unlike previous eras, LST did not create favorable supply-demand dynamics for Ethereum's price. Staking yields remained modest for leading platforms, with even re-staking protocols like EigenLayer unable to significantly improve these rates.

This modest yield acted similarly to low interest rates, suppressing economic activity. Despite lower gas fees resulting from L1 improvements and L2 adoption, on-chain activity remained subdued.

The LST era did not generate the explosive growth of previous cycles. The benchmark interest rates proved insufficient to attract major capital inflows, only delaying potential selling pressure. Nevertheless, LST staking locked substantial Ethereum supply, preventing dramatic price collapses.

Era 4: Asset Era

The Asset era represents Ethereum's transformation from alternative asset to mainstream financial instrument. This transition began with Ethereum's approval for US spot ETFs, creating significant market momentum and renewed discussions about what makes the hottest crypto assets.

This milestone initiated Ethereum's fourth major chapter, though the transformation process proved challenging. The ETH/BTC exchange rate fluctuated, prompting the community to question Ethereum's direction once again.

Corporate Bitcoin treasury management strategies provided inspiration. Some companies pioneered approaches of purchasing cryptocurrency with capital, issuing equity and debt against these holdings, then acquiring more assets—creating a self-reinforcing cycle between traditional finance and cryptocurrency.

Ethereum-focused entities adopted this model. Sharplink, led by Consensys, and Bitmine, backed by Cathie Wood's ARK Invest, competed to become Ethereum's institutional champions. These companies and their imitators established resonance between US equity markets and cryptocurrency.

This institutional adoption fundamentally altered Ethereum's supply-demand dynamics. Institutions began purchasing Ethereum at market prices, while the LST era's locked liquidity reduced available supply. This combination created FOMO (fear of missing out) around the stock-crypto linkage.

Ethereum's selection by institutional capital reflected accumulated goodwill and reputation. Vitalik Buterin's consistent focus on technological advancement—including ZKVM, privacy solutions, and L1 simplification—rather than personal enrichment, built credibility over years. His refusal to promote commercial ventures or endorse questionable projects maintained Ethereum's integrity.

The ecosystem's values and Buterin's leadership proved instrumental in attracting institutional investment, enabling Ethereum to enter this fourth era of maturation and solidifying its reputation as one of the hottest crypto platforms for serious investors.

Conclusion

Ethereum's ten-year journey demonstrates remarkable resilience and continuous evolution. The network has maintained years of uninterrupted operation without maintenance windows—a reliability exceeding major technology platforms like Facebook, AWS Kinesis, and Cloudflare, all of which experienced significant outages during comparable periods.

From the ICO era's speculative frenzy through DeFi's financial innovation, the LST era's infrastructure development, to the current Asset era's institutional adoption, Ethereum has consistently adapted to market demands while maintaining its core values. Each era built upon previous foundations, with failures and experiments contributing to eventual success.

When evaluating what is the hottest crypto, Ethereum's journey offers compelling evidence. Its blockchain robustness, combined with leadership committed to technological advancement rather than personal gain, positions Ethereum for continued relevance. The platform's proven track record of reliability, innovation, and integrity distinguishes it from competitors seeking short-term hype.

As Ethereum continues evolving, its position as one of the hottest crypto assets stems not from speculation alone, but from genuine technological progress, institutional adoption, and consistent value delivery. The journey continues, with each era preparing the foundation for what comes next in Ethereum's ongoing evolution, making it a compelling answer to anyone asking "what is the hottest crypto" in today's market.

FAQ

What is the hottest crypto to buy right now?

Bitcoin and Ethereum remain the market leaders with highest trading volume and adoption. Both offer strong fundamentals and liquidity. Consider your investment goals before deciding.

Which crypto has 1000x potential?

Zano (ZANO) stands out as a penny crypto with realistic 1000x potential, backed by strong fundamentals and growth prospects. Other promising candidates include Nosana for AI compute solutions and Pengu for emerging memecoin trends.

What is Elon Musk's favorite crypto coin?

Elon Musk's favorite crypto coin is Bitcoin (BTC). He has publicly supported Bitcoin multiple times and is known to hold it. Dogecoin (DOGE) is also a coin he frequently endorses and promotes on social media.

What crypto under $1 will explode?

Brett (BRETT) and Pepe (PEPE) show strong potential to surge in 2025, trading around $0.27-$0.40. Analysts predict BRETT could reach $0.40-$0.60 driven by meme coin momentum and scalability upgrades. EOS, Core, and Sei are also solid contenders with innovative blockchain capabilities.

What are the top trending cryptocurrencies by market cap and trading volume?

As of December 2025, the top trending cryptocurrencies by market cap and trading volume are Toncoin, Solana, and Ultima. These digital assets lead in both market capitalization and daily trading volume, reflecting strong market interest and liquidity.

What are the main risks and volatility factors in investing in trending cryptocurrencies?

Trending cryptocurrencies face volatility from speculative trading, regulatory shifts, and market sentiment changes. Price swings driven by hype and limited liquidity create unpredictability. Focus on project fundamentals and long-term technology adoption to navigate these dynamics effectively.

How do I identify a hot crypto before it pumps?

Look for early signals like rising 50-day moving average crossing above 200-day moving average, strong community engagement, and increasing trading volume. These indicators suggest potential for price increases.