What Is Ethereum’s Native Cryptocurrency?

What Is Ethereum’s Native Cryptocurrency?

Ethereum is a decentralized blockchain platform that allows developers to build and deploy smart contracts and decentralized applications (dApps). Its native cryptocurrency, Ether (abbreviated as ETH), is integral to the network. ETH is used both to pay transaction fees (known as gas fees) and to reward network validators, thereby ensuring the blockchain’s security and stability.

ETH is central to the Ethereum ecosystem. It fuels the execution of smart contracts and serves as a foundational asset for decentralized finance (DeFi), NFT transactions, and a broad range of blockchain applications. Whether for everyday transactions or application deployment by developers, ETH is essential and irreplaceable.

Latest ETH Price and Market Performance

As of September 5, 2025 (UTC), Ethereum is priced at approximately $4,327.91 USD, with a total market capitalization exceeding $520 billion USD. Second only to Bitcoin, ETH continues to hold its place as the world’s second-largest cryptocurrency. Since May 2025, ETH has surged over 200%, setting new record highs and demonstrating strong investor confidence in its long-term potential.

Although ETH experiences significant price volatility, its foundational role in blockchain technology and financial innovation gives it considerable influence in the crypto markets. Increasing adoption among both institutional investors and retail users drives growing liquidity and sustained market demand for ETH.

ETH Functions and Uses

• Transaction Fee Payments: Every activity on the Ethereum network, from sending funds to deploying smart contracts, requires ETH to cover transaction (gas) fees.
• Powering Smart Contracts: ETH provides the computational fuel that enables smart contracts to execute as programmed.
• Foundation for Decentralized Applications: Many dApps depend on ETH for their operations and transactions.
• Investment and Store of Value: Widely recognized as “digital gold,” ETH is often used for portfolio diversification and risk hedging.

Future Prospects for ETH

With ongoing advancements to the Ethereum network—such as the anticipated upgrade—scalability and transaction efficiency are expected to improve significantly, potentially lowering gas fees and further driving ETH adoption and demand. This could be a catalyst for future price increases.

Looking forward, ETH’s utility will expand beyond paying fees and powering smart contracts. A growing array of financial products, DeFi protocols, and NFT platforms will rely on ETH, further reinforcing its central role in the blockchain ecosystem.