What it is
Ether (ETH) is the digital currency that powers the Ethereum network. It serves multiple purposes: users pay transaction fees, known as gas fees, in ETH to execute smart contracts and send tokens. ETH is also staked by validators to secure the network under the Proof of Stake consensus mechanism. Furthermore, Ether can be used as a medium of exchange, a store of value, and collateral in decentralized finance applications.
The price of Ether is a major market indicator, second only to Bitcoin in market capitalization. Its value is influenced by network usage, demand from DeFi and NFT ecosystems, and changes in the underlying Ethereum protocol, such as upgrades that affect its supply. Retail investors often hold ETH as a core part of their crypto portfolio, tracking its price movements and supply dynamics.
Why it matters
ETH is a dominant cryptocurrency and essential for interacting with the Ethereum ecosystem, influencing many altcoins.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice