What is Ethereum

Ethereum (ETH) is an open-source blockchain platform initiated by Vitalik Buterin in 2015, supporting the development and operation of smart contracts and decentralized applications (DApps), ranked second in the market after Bitcoin.

Its consensus mechanism has completed “The Merge,” transitioning from Proof-of-Work to the more energy-efficient Proof-of-Stake, reducing energy consumption by over 99%.

Major Technical Upgrade Review

• Dencun Upgrade: EIP-4844 (Proto-Danksharding) will be introduced in March 2024, reducing L2 transaction costs through “Blob” data, aiding in scalability improvements.
• Pectra Upgrade: Expected to launch in mid-2025, including EIP-7251 and EIP-7702, which will relax the minimum staking threshold for single-node validation from 32 Ether to 2,048 Ether, and enhance programmable support for EOA addresses.
• Future Outlook: Continuously promote technologies such as sharding solutions and account abstraction to lay the foundation for large-scale applications.

Core ecosystem and application scenarios

1. Decentralized Finance (DeFi): Protocols like Uniswap and MakerDAO have a total locked value exceeding 50 billion USD, offering services such as lending and automated market making.
2. NFT and the Metaverse: The prosperity of platforms like OpenSea and Decentraland is driving the trading of digital artworks and virtual real estate.
3. Enterprise applications: Microsoft, Amazon, and others are exploring cross-chain bridges and cryptocurrency payment solutions, with a growing demand for enterprises to go on-chain.
4. Stablecoin issuance: USDC and DAI dominate the market, with stablecoin trading accounting for over 40% of Ethereum’s daily trading volume.

Investment Value Analysis

The Ethereum ecosystem has shown steady growth, with an increase of over 40% since 2025. In the long term, it is driven by three main forces:

• Institutional entry: Giants like BlackRock are positioning themselves for staked ETFs, which are expected to bring in over $10 billion in incremental funds.
• Technical upgrade: Pectra and sharding solutions are continuously being implemented to reduce transaction costs and increase throughput.
• Diverse scenarios: The DeFi and NFT markets are thriving, with the total value locked in the ecosystem nearing 52 billion USD.

Newbie onboarding process

1. Choose an exchange: recommended mainstream platforms such as Gate, pay attention to KYC and security.
2. Wallet Configuration: MetaMask is a mainstream browser wallet that supports the Ethereum mainnet and multiple L2s.
3. Purchase and Transfer: After fiat currency recharge, directly purchase Ether; it can be transferred to a personal wallet for subsequent operations.
4. Risk control: Do not go all in at once, build your position in batches, and set stop-loss and take-profit points.
5. Continuous Learning: Pay attention to official documentation, community updates, and upgrade roadmaps to timely adjust investment strategies.