1. What is #Ethereum ?
Ethereum is a smart contracts blockchain, allowing the creation of decentralized applications (dApps) on its network.
It not only serves to transfer value: it is a platform for DeFi, NFT, tokenized finance, and more.
2. Importance within the Top 10
Ethereum is one of the leading cryptocurrencies by market capitalization and is widely used on Binance and other exchanges due to its great utility.
Its DeFi ecosystem is dominant: many important protocols (like Aave, Uniswap, Lido, etc.) are built on Ethereum.
3. Ethereum Economy (Tokenomics)
Staking: Ethereum uses Proof-of-Stake (PoS), allowing users to validate the network by staking ETH.
Currently, nearly 30% of the ETH supply is locked for staking, demonstrating strong validator participation.
With the EIP-1559 improvement, part of the transaction fees are “burned” (taken out of circulation), which could make ETH have a deflationary dynamic under certain scenarios.
4. Recent Update: Pectra
In May 2025, the Pectra update was implemented.
Major Improvements:
Increase in the ETH staking limit from 32 ETH to 2,048 ETH per validator, making it easier for large validators to participate.
Introduction of “smart” accounts through contracts (EIP-7702), allowing wallets to perform more advanced actions and pay fees in tokens other than ETH, such as stablecoins.
5. Security and Decentralization
With so much ETH in staking, the network is more secure because an attack would require controlling a very large fraction of that stake.
However, there are also studies showing dependency risks among smart contracts: many contracts depend on a few “deployers,” which could present structural vulnerabilities.
6. Risks and Challenges
Fees (“gas fees”) may rise during times of network congestion, making it more expensive to use Ethereum for transactions or dApps.
Vulnerabilities in smart contracts: as many DeFi applications are on Ethereum, there is a risk of hacks or failures.
Regulation: as with many cryptos, regulation can change, which could affect its institutional adoption and use.
7. Real Use Case and Why It Matters
DeFi: Ethereum is the foundation for many decentralized financial protocols (loans, yield farming, exchanges).
Staking: Users can participate in network validation and receive rewards.
Tokenization: Real-world assets can be represented as tokens on Ethereum.
Web3 Infrastructure: Ethereum is one of the most important layers for the next generation of decentralized applications.
8. Future Outlook
If improvements like Pectra continue to advance, Ethereum could become more efficient, scalable, and attractive to major players (institutional investors, companies).
The growth of Layer 2 (scaling solutions) can help reduce fees and increase the use of dApps on Ethereum.
As more ETH gets locked in staking, the network's security could continue to increase, strengthening its position.
✅ Conclusion: Ethereum is not just a cryptocurrency “to invest in”: it is a key infrastructure in the crypto world, especially in DeFi and Web3 applications. If you are considering ETH, understand both its risks (gas fees, vulnerabilities) and its strengths (staking, community, roadmap).$ETH
