Ethereum for Beginners: Guide to Ethereum Price, Blockchain, DeFi, and How to Buy

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Ethereum: A Beginner's Guide

Ethereum is a decentralized blockchain platform launched in 2015, designed to support smart contracts and decentralized applications (DApps). Unlike Bitcoin, which focuses on digital currency, Ethereum enables programmable transactions, DeFi, NFTs, and more. Its native cryptocurrency, Ether (ETH), powers transactions and secures the network via staking.

Key Highlights

Ethereum is the second-largest crypto platform, known for its versatility and developer ecosystem.
Smart contracts enable trustless applications, from DeFi to NFTs.
ETH is used for gas fees (transaction costs) and staking rewards.

Ethereum Price History (2015–2025)

2015–2016: Launched at ~$0.30, grew slowly.
2017 Bull Run: Surged from $8 to ~$1,400, driven by ICOs.
2018 Crash: Dropped ~94% to ~$80.
2021 Surge: Hit an all-time high of ~$4,800 due to DeFi/NFT boom.
2022 Downturn: Fell to ~$1,000 amid market crashes.
2023–2025: Recovered to ~$2,500, boosted by ETFs and upgrades.

Latest Developments (Mid-2025)

Staking Growth: Over 35M ETH (28% of supply) is staked, reducing liquid supply.
Regulatory Clarity: SEC clarified that protocol staking isn’t a security.
Spot ETH ETFs: Approved in the U.S. (July 2024), increasing institutional adoption.
Dencun Upgrade (2024): Reduced layer-2 fees via EIP-4844 (proto-danksharding).

Ethereum’s Role in DeFi

Dominates DeFi with >50% of total value locked (TVL).
Hosts major protocols like Aave, Uniswap, and MakerDAO.
High gas fees during peak demand remain a challenge.

How Ethereum Works

Proof-of-Stake (PoS): Replaced energy-intensive mining in 2022 (The Merge).
Smart Contracts: Self-executing code enabling decentralized apps.
Upgrades: Focused on scalability (sharding, rollups) and efficiency.

Buying & Storing ETH

Choose an exchange (Coinbase, Binance, Kraken).
Verify identity (KYC).
Deposit funds & buy ETH.
Secure ETH in a wallet (MetaMask, Ledger).

FAQs

ETH vs. Ethereum: ETH is the currency; Ethereum is the platform.
Gas Fees: Transaction costs that spike during network congestion.
Staking: Earn rewards by locking ETH (mining is no longer possible).
NFTs: Unique digital assets, mostly built on Ethereum.

Ethereum remains a leader in blockchain innovation, evolving through upgrades and growing adoption in finance and Web3.

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