Ethereum has established itself as the second most significant cryptocurrency on the market, revolutionizing the blockchain ecosystem with major innovations. Beyond just a digital currency, Ethereum has paved the way for a realm of decentralized applications, DeFi finance, and smart contracts. Explore what Ethereum is and why this technology is still disrupting the digital world in 2025.
Ethereum is a complete blockchain platform launched in 2015 by Vitalik Buterin. Unlike Bitcoin which focuses on financial transactions, Ethereum enables the development of decentralized applications through smart contracts, autonomous programs that execute automatically when certain conditions are met.
Ether (ETH), Ethereum’s native cryptocurrency, plays a dual role: as a tradable digital asset and as “fuel” necessary to run applications on the network. With its ability to process transactions in just 10 seconds (compared to 10 minutes for Bitcoin) and its technical flexibility, Ethereum has established itself as the second-largest cryptocurrency by market capitalization.
Ethereum’s true revolution lies in its vision: creating a decentralized global infrastructure where applications, contracts, and value exchanges exist without intermediaries or central authorities.
Ethereum’s history begins in 2013 with the publication of the whitepaper by Vitalik Buterin, who was frustrated by Bitcoin’s limitations. The project took shape in 2014 at the Bitcoin conference in Miami, where Buterin partnered with developers like Gavin Wood and Joseph Lubin. An ICO raised $18 million to fund development.
July 30, 2015 marked the launch of the “Frontier” mainnet. In 2016, The DAO hack ($60 million stolen) led to a controversial hard fork that gave birth to Ethereum Classic. The following years saw major updates such as “Homestead” (2016) and “Metropolis” (2017-2019).
Summer 2020 was marked by the explosion of DeFi, followed in 2021 by the rise of NFTs. September 2022 represented a turning point with “The Merge,” the transition to Proof of Stake which reduced energy consumption by 99%. In 2024, the approval of Ethereum Spot ETFs and Donald Trump’s election propelled ETH to $4,092 in March.
Born in Russia in 1994 and emigrating to Canada at age six, Vitalik Buterin is a computer science prodigy. At 17, he discovered Bitcoin and co-founded Bitcoin Magazine in 2011. Frustrated by Bitcoin’s limitations, he published Ethereum’s whitepaper in 2013, at just 19 years old.
His vision: to create a decentralized “world computer” capable of executing any program without central authority. Unlike many tech entrepreneurs, Buterin advocates for values of decentralization and accessibility rather than simply pursuing profit. Despite his considerable fortune, he maintains a modest lifestyle and reinvests in research. In 2021, he donated one billion dollars in SHIB tokens to fight COVID in India. At 31, his influence extends far beyond Ethereum to mark the history of technological innovation.
Ethereum 2.0, now fully operational, represents a major evolution with the abandonment of Proof of Work in favor of Proof of Stake, made official in September 2022 during “The Merge.” This transition reduced energy consumption by 99% while preparing the ground for future improvements.
Development began in December 2020 with the “Beacon Chain,” introducing ETH staking. This architecture allows holders to participate in network security by locking their tokens rather than using energy-intensive mining equipment.
The future of Ethereum 2.0 looks promising with “sharding” which will divide the blockchain into fragments capable of processing transactions in parallel, significantly increasing network throughput to compete with traditional payment systems.
Ethereum has revolutionized the crypto universe by introducing a programmable blockchain platform. Its smart contracts allow for the creation of autonomous applications that execute without intermediaries, such as insurance contracts that trigger automatically.
Decentralized finance (DeFi) represents one of the most transformative applications, with protocols like Aave or Uniswap democratizing access to financial services. ERC-20 tokens have facilitated the creation of thousands of specialized cryptocurrencies, while NFTs have transformed our conception of digital ownership.
DAOs (Decentralized Autonomous Organizations) enable transparent governance without centralized hierarchy. Decentralized identity, blockchain games, and tokenization of real assets constitute other promising use cases. Ethereum also serves as a base layer for Web3, this new iteration of the internet where users control their data.
The Ethereum network functions as a decentralized global computing system, relying on thousands of nodes that maintain a copy of the blockchain. Since “The Merge,” Ethereum uses Proof of Stake: validators, who have staked at least 32 ETH, are randomly selected to propose and validate blocks.
Gas fees measure the computational cost of operations and have been optimized with EIP-1559 (August 2021), which introduces a “burning” mechanism creating deflationary pressure on ETH. The EVM (Ethereum Virtual Machine) enables smart contracts to execute deterministically across all nodes.
To solve scalability limitations, “layer 2” solutions like rollups execute transactions off-chain while inheriting Ethereum’s security, multiplying throughput while reducing fees.
The Ethereum blockchain distinguishes itself by its ability to store and execute code through the EVM, a Turing-complete virtual machine. This fundamental characteristic paved the way for smart contracts and decentralized applications that now constitute its ecosystem.
Since its creation, Ethereum has undergone several major updates, culminating with “The Merge” in 2022. In terms of performance, the blockchain processes approximately 15-30 transactions per second on its base layer, complemented by layer 2 solutions that enable thousands of transactions per second.
Its security now relies on Proof of Stake, with more than 30 million ETH staked ($90 billion). Interoperability constitutes another major asset thanks to standards like ERC-20 for fungible tokens or ERC-721 for NFTs, creating an ecosystem where different applications interact seamlessly.
The evolution of Ethereum’s consensus algorithm represents one of the most significant transformations in cryptocurrency history. At its beginnings, Ethereum used Proof of Work, requiring colossal energy consumption and favoring mining centralization.
The transition to Proof of Stake, realized in September 2022 with “The Merge,” reduced energy consumption by 99%. In this system, validators stake at least 32 ETH and are randomly selected to validate blocks, with a probability proportional to their stake.
This mechanism improves security through a system of incentives and penalties: honest validators are rewarded, while fraudsters risk losing their staked ETH. Decentralization is strengthened by lowering barriers to entry, and Ethereum’s economy has been modified with a significant reduction in the emission rate.
Ethereum’s security rests on several fundamental pillars. Proof of Stake creates a strong economic incentive to follow the rules: with more than 30 million ETH staked ($90 billion), the cost of an attack is prohibitive.
Advanced cryptography (ECDSA for signatures, Keccak-256 for hashing) and distributed consensus reinforce this security. For smart contracts, the ecosystem has developed rigorous practices for auditing and formal analysis tools that mathematically verify their behavior. Hardware wallets and multi-signature solutions offer additional protections for users.
Compared to other blockchains, Ethereum benefits from enhanced security thanks to its wide decentralization and active community of auditors, although future challenges include protection against quantum attacks.
Ethereum benefits from a mature ecosystem with thousands of applications, growing institutional adoption (Spot ETFs approved in 2024), an unmatched developer community, and proven security. Its ability to evolve has been demonstrated by major updates like “The Merge.”
High transaction fees during periods of high demand sometimes make the platform inaccessible to small users. Scalability limitations persist despite improvements, with only 15-30 transactions per second on the base layer. Technical complexity constitutes a barrier to entry, while competition intensifies with blockchains like Solana offering faster and less costly transactions.
The expansion of DeFi, tokenization of real assets, and development of Web3 represent considerable opportunities. However, technological competition, fragmentation of the ecosystem between layer 1 and layer 2, and regulatory risks constitute threats to monitor.
Since its launch at around $1 in 2015, ETH has experienced a remarkable trajectory, reaching an all-time high of $4,800 in November 2021. After the crypto winter of 2022, ETH is trading around $1,600 in April 2025, having recovered much of its value.
The approval of Ethereum Spot ETFs in 2024 and Donald Trump’s election had a significant impact, with record inflows into these financial products. Factors influencing the price include institutional adoption, technical developments like the transition to PoS, competition from other blockchains, and the macroeconomic context. For 2025, experts anticipate a price of around $10,000, reflecting the impact of continuous innovations. Longer term, some analysts envision up to $170,000 by 2030, although these projections remain speculative.
Ethereum’s history is marked by significant events that have shaped its evolution and defined its trajectory. Each of these key moments illustrates Ethereum’s capacity to innovate and overcome challenges.
Vitalik Buterin, then only 19 years old, published the Ethereum whitepaper, presenting his revolutionary vision of a programmable blockchain. Frustrated by Bitcoin’s limitations, he imagined a platform capable of executing complex decentralized applications beyond simple monetary transactions. This founding document laid the intellectual foundations for a technology that would transform the blockchain ecosystem.
Ethereum’s ICO (Initial Coin Offering) raised about $18 million in Bitcoin, a considerable amount for the time. This public token sale funded the project’s development and demonstrated early interest in this ambitious vision. Participants received ETH at about $0.30 per unit, an investment that would prove extraordinarily profitable.
Ethereum’s mainnet was officially launched with its first version, dubbed “Frontier.” Although rudimentary and primarily aimed at developers, this initial version marked Ethereum’s transition from theoretical concept to operational reality. For the first time, smart contracts could be deployed on a public blockchain with a Turing-complete programming language.
A traumatic event shook the young community: The DAO hack, a pioneering decentralized finance project that had raised $150 million. A flaw in its code allowed an attacker to divert approximately $60 million in ETH. Faced with this crisis, the community split on how to respond.
The majority opted for a “hard fork” to recover the stolen funds, while a minority, attached to the principle of immutability, maintained the original chain under the name Ethereum Classic (ETC). This fundamental split raised deep philosophical questions about blockchain governance.
First major update to Ethereum, “Homestead” improved the stability and security of the network. This crucial step in the platform’s maturation introduced several technical optimizations and signaled growing confidence in the protocol’s robustness.
2017 saw the emergence of the Initial Coin Offering phenomenon on Ethereum. Hundreds of projects collectively raised billions of dollars by issuing ERC-20 tokens, demonstrating Ethereum’s power as a decentralized funding platform. This financial innovation, although controversial and sometimes tainted by scams, democratized access to capital for blockchain startups and propelled Ethereum adoption.
Summer 2020 marked the explosion of decentralized finance (DeFi) on Ethereum. Protocols like Uniswap, Aave, or Compound revolutionized traditional financial services by offering decentralized alternatives for exchanging, lending, or borrowing cryptocurrencies. The total value locked (TVL) in these protocols went from a few hundred million to several tens of billions of dollars in a few months, driving Ethereum adoption while highlighting its scalability challenges.
The EIP-1559 improvement proposal introduced a revolutionary mechanism for managing transaction fees. This update fundamentally changed Ethereum’s economy by “burning” part of the fees instead of giving them to miners, thus creating deflationary pressure on ETH. This innovation also improved transaction fee predictability, partially solving one of the most frustrating problems for users.
September 15, 2022 marked a decisive turning point with “The Merge,” the transition from the Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS). This historic update, prepared for years, reduced the network’s energy consumption by more than 99%, addressing environmental concerns while paving the way for future scalability improvements. The Merge represents one of the most complex technical transformations ever performed on an active blockchain network.
In May 2024, the United States Securities and Exchange Commission (SEC) approved the first Ethereum Spot ETFs, allowing traditional investors to expose their portfolios to ETH without having to directly manage cryptocurrencies.
This historic decision, following the approval of Bitcoin Spot ETFs in late 2023, marked a crucial step in Ethereum’s institutionalization. The first days of trading saw record inflows of more than $215 million, testifying to institutional interest in this asset class.
Donald Trump’s election for a second term in November 2024 had a notable impact on the cryptocurrency market, including Ethereum. His administration, perceived as favorable to innovation in the crypto sector, inspired investor confidence. This positive perception, combined with the anticipation of clearer and less restrictive regulation, contributed to a significant rise in ETH’s price, which reached a peak of $4,092 in March 2025.
These key moments illustrate Ethereum’s extraordinary journey, from its visionary conception to its current status as an essential infrastructure of the decentralized digital economy. Each stage testifies to this revolutionary technology’s capacity for adaptation and innovation, as well as the strength of its community in facing technical, economic, and regulatory challenges.
To buy Ethereum (ETH), several options are available to you in 2025, from centralized exchanges to traditional brokers. Here’s a comprehensive guide to help you make the best choice according to your profile.
Centralized exchanges like Bitget, Binance, or Weex are platforms specialized in cryptocurrencies where you actually buy and hold your ETH. You can transfer them to personal wallets, use them in decentralized applications, or stake them to generate yields.
Traditional brokers like eToro and Vantage now offer ETH as an investment product among others. While more familiar to traditional investors, they generally offer fewer features and don’t always allow withdrawing your cryptocurrencies to external wallets.
For a true crypto experience and total ownership of your assets, centralized or decentralized exchanges are recommended. You truly own your tokens there, unlike with some brokers where you only buy exposure to the price.
Bitget stands out as one of the most comprehensive options in 2025. This platform combines enhanced security, intuitive interface, and competitive fees (0.1% per transaction). Particularly suitable for beginners and experienced users alike, Bitget allows you to buy ETH directly with a bank card in just minutes.
Binance remains the reference in terms of liquidity and trading volume, offering the tightest spreads in the market. The platform also offers flexible and fixed savings options to grow your ETH.
Weex distinguishes itself by its youth with an innovative interface, ease of use, and competitive fees. For advanced users, Weex offers sophisticated trading features and relevant security.
By following these tips, you can acquire Ethereum with confidence and security, whether you’re a beginner or experienced investor.
Obtaining Ethereum for free is possible through several legitimate methods. Ethereum faucets distribute small amounts of ETH in exchange for solving captchas or watching advertisements, although the amounts are minimal.
Airdrops, free distributions by emerging projects, can be more lucrative. Staking allows generating additional ETH if you already own some. Crypto cashback and referral programs also offer opportunities, as do Play-to-Earn games and rewarded open-source contributions.
Approach these methods with caution: beware of scams, evaluate the time/reward ratio, and consider tax implications and transaction fees.
In 2025, Ethereum enjoys legal recognition in most developed economies. The approval of Ethereum Spot ETFs by the US SEC in 2024 constituted a decisive step in its institutional legitimization.
In France and Europe, Ethereum fits into a clear legal framework with the 2019 PACTE law and the MiCA regulation that came into force in 2025. The transition to Proof of Stake in 2022 raised questions about ETH’s classification as a security or commodity, but the ETF approval implicitly recognized a status closer to a commodity. On the tax front, capital gains in ETH are generally taxable, and staking activities raise specific questions. While ETH itself is legal, certain uses such as ICOs or DeFi applications may be subject to restrictions depending on jurisdictions.
The distribution of Ethereum holdings reveals significant concentration: the top 100 non-exchange addresses hold about 40% of all ETH in circulation. Among these “whales” are institutional investors like Grayscale or BlackRock, early investors, and founders like Vitalik Buterin.
The Ethereum Foundation possesses a substantial reserve to fund research and development. Exchanges like Binance or Coinbase collectively manage millions of ETH for their clients, while smart contracts immobilize a significant proportion of the supply, notably the staking contract with more than 30 million ETH (25% of the total supply).
Despite this concentration, distribution is gradually improving with approximately 60 million unique addresses holding ETH in 2025, testifying to relatively broad adoption.
In 2025, Ethereum stands as a fundamental infrastructure of the decentralized digital economy. Its successful transition to Proof of Stake, unmatched ecosystem of applications, and approval of Spot ETFs constitute major strengths. Its developer community remains the most active in the blockchain ecosystem.
However, challenges persist: limited scalability of the main network, sometimes prohibitive fees, growing competition from platforms like Solana, and complexity for the uninitiated. Facing these challenges, Ethereum maintains decisive competitive advantages: proven security, effective decentralization, and a mature ecosystem.
We consider Ethereum a strategic long-term investment, with price forecasts of $10,000 by the end of 2025 that seem reasonable. The tokenization of real assets represents one of the most promising opportunities for the years ahead.
For investors, we recommend a diversified approach, a long-term horizon, regular investment (DCA), and exploration of the ecosystem beyond ETH itself.
Rédacteur web depuis de nombreuses années et spécialiste en SEO, Thomas a rejoint l'équipe d'InvestX dès le lancement du projet. Passionné par l'univers des cryptomonnaies et du Web3, Thomas s'est donné pour mission d'offrir un maximum de valeur aux lecteurs et de les initier au monde des blockchains, qu'il considère comme l'avenir de la société.
Bitcoin is a digital currency for transactions, while Ethereum is a programmable platform for creating decentralized applications via smart contracts, offering a complete ecosystem beyond simple value transfers.
Staking involves immobilizing ETH (32 minimum for an independent validator) to secure the network and receive rewards. Shared staking services are available for smaller amounts.
Analysis suggests this possibility, driven by institutional adoption and technical improvements, representing an increase of around 230% on the current level of $3,026.
Yes, their approval in 2024 facilitated access for institutional investors, attracting over $215 million in three days and reinforcing Ethereum’s demand and legitimacy.
Ethereum offers solid advantages (dominant position, active community, potential for adoption), but also carries risks linked to volatility, competition and regulatory uncertainties.
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