ETH Demand

Definition ∞ ETH demand represents the total market desire for Ethereum’s native cryptocurrency, Ether (ETH), driven by its various use cases within the Ethereum ecosystem. This demand originates from transaction fees, staking requirements, collateral for DeFi applications, and its role as a store of value. It reflects the aggregate interest from users, developers, and investors in utilizing or holding ETH. Strong ETH demand often correlates with network activity and price appreciation.
Context ∞ Discussions around ETH demand frequently analyze factors such as network upgrades, the growth of decentralized applications (dApps), and the overall health of the DeFi sector. The transition to Proof-of-Stake and the subsequent implementation of EIP-1559, which burns a portion of transaction fees, have significantly altered ETH’s supply dynamics, further influencing demand. Observing demand trends provides insight into the vitality of the Ethereum network.