ETH

Definition ∞ ETH is the native cryptocurrency of the Ethereum blockchain. It serves as a medium of exchange and is primarily used to pay for transaction fees and computational services on the network. Beyond its role as a digital asset, ETH also functions as a store of value and a unit of account within the Ethereum ecosystem. Its supply and demand dynamics are closely watched indicators of the health and activity of the Ethereum network.
Context ∞ The prevailing discussion around ETH often involves its price performance, its role in Ethereum’s proof-of-stake consensus mechanism following “The Merge,” and its utility in decentralized finance (DeFi) applications. Recent developments may include updates to the Ethereum roadmap that affect ETH issuance or staking rewards. Understanding the economic factors influencing ETH is crucial for interpreting market trends and assessing the overall trajectory of the Ethereum ecosystem. Its stability and utility are foundational to the network’s broader functionality.