7 Facts About Ethereum That Will Surprise You

Last Updated October 27th 2022

4 Min Read

If you like Ethereum, here are the facts about it that you could find surprising.

Key Points

Ethereum is not just a cryptocurrency but more of a decentralized global computer.
Ethereum was funded through crowdfunding, which made it decentralized from the start.
Ethereum is in the process of a significant change from Proof-of-Work to Proof-of-Stake.

Ethereum (ETH) is the second-largest cryptocurrency by market capitalization. It is also one of the cryptocurrencies that have shown the world just how big of a deal blockchain technology is and how it could change the world. That's because Ethereum is directly connected to lots of revolutionary technologies ranging from DeFi to NFTs.

Ethereum cryptocurrency

Are you interested to learn more about the second largest cryptocurrency? Below are some surprising facts about Ethereum.

1. Ethereum Is More Than A Cryptocurrency

Ethereum is often misconstrued as just another altcoin, but this can't be further from the truth. Ethereum is a crypto platform and programming tool that allows users to decentralize any process within the network.

It's far more than just another cryptocurrency, as it offers developers access to an entire suite of features, including decentralized applications (Dapps). For instance, developers can create games on top of Ethereum rather than just using one specific game engine.

To give you a clear picture of how big of a deal Ethereum is, consider that the majority of the cryptocurrencies in the market today run on the Ethereum network. This alone should tell you that it is not your average altcoin.

2. Like Bitcoin, Ethereum Can Move The Market

Today, a big portion of tokens in the market run on Ethereum's ERC-20 standard. The ERC-20 is a revolutionary standard for smart contracts used for price correlation without third parties. Since it runs on the Ethereum network, the Ethereum price impacts all ERC-20 tokens by default. This makes Ethereum the only other cryptocurrency that can drive the market outside Bitcoin.

3. Ethereum Was Crowd-Funded

A lot of cryptocurrencies in the market today are centralized to some extent. Many of them raise their initial funds from an early group of wealthy backers. Ethereum does not have this problem because it raised its initial funds through crowdfunding.

Vitalik Buterin is the lead developer behind Ethereum, which he invented in 2013 but didn't have enough money to actualize. Luckily for him, though, online public sales started in 2014 was a success, and Ethereum came alive in 2015.

4. A Lot Of Big Businesses Love Ethereum

Ethereum is one of the few cryptocurrencies that have recorded consistent adoption at both retail and institutional levels. At the moment, some of the biggest corporations in the world are involved with Ethereum through the Enterprise Ethereum Alliance. Some of the most prominent corporate players of the EEA include JP Morgan, Accenture, Toyota Research Institute, Microsoft, and Samsung, among many others.

Since all these companies are all committed to Ethereum's growth and development, Ethereum's future adoption is pretty much secured. When you consider that Ethereum is also available on the best cryptocurrency exchanges, Ethereum's future looks pretty bright.

Read Also: Ethereum (ETH) Price Prediction

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

5. Ethereum Tokenomics Are Changing

Ethereum is quite an exciting cryptocurrency. Since it launched, it has been inflationary, yet it managed to go from pennies to a high of $4800 in November 2021. While this may sound surprising when considering the laws of demand and supply, it is an indicator that Ethereum is in high demand, and all Ether mined is taken up within the Ethereum ecosystem.

With such strong demand, Ethereum comes off as a top cryptocurrency to watch now that it is becoming deflationary. The change in tokenomics was introduced through the EIP-1559 upgrade back in August 2021. Through this upgrade, part of the fees generated in Ethereum is burned, which makes Ethereum an interesting cryptocurrency play to watch going forward.

6. Ethereum Can Be Divided To 18 Decimals

Over the years, Ethereum has become more expensive, which means it is out of reach for many investors. For instance, in January 2016, Ethereum was trading at $1. Currently, Ethereum is trading at $1,550. This is actually after a correction from a high of $4,800 back in November 2021.

Interestingly, Ethereum remains within reach of ordinary investors thanks to divisibility. Ethereum is divisible by up to 18 decimal places. The ability to trade in smaller units with ease helps Ethereum maintain price stability and security while accessible to all.

7. Ethereum Was Forked In 2016

In 2016, the Ethereum DAO was hacked, and almost 33% of the DAO funds were transferred to a different wallet. In a controversial move, Ethereum was forked, and all the funds were restored. Those who didn't like this move held on to the original chain, which is known as Ethereum Classic. The key difference between Ethereum and Ethereum Classic is that Ethereum Classic has a fixed supply, while the supply of Ethereum is variable. Of the two, Ethereum has become more successful. It is listed on all major cryptocurrency exchanges, and its adoption is much higher than that of Ethereum Classic.

The Bottomline

Like all other assets, Ethereum has an element of risk to it. Investments in cryptocurrencies are inherently riskier than conventional assets such as stocks and real estate. However, they do have a higher upside potential than traditional asset classes. As such, it makes sense to include them in an investment portfolio.

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