What is Ethereum?

With a market capitalization of around $233 billion, Ethereum is the second-largest cryptocurrency. That places it well below Bitcoin’s roughly $1.33 trillion market cap, but significantly ahead of third-place Tether, which sits at $183 billion.

One major distinction sets Ethereum apart from other cryptocurrencies: It’s not simply digital money. It operates as a decentralized computing platform, allowing users to build and run applications without oversight from any company or bank.

In basic terms, developers use Ethereum’s blockchain network (instead of, say, Amazon or Google servers) to create apps for activities like borrowing, lending, investing, trading, and more. ETH, the token, is the currency used for these operations.

Ethereum price history

When Ethereum’s initial coin offering (ICO) launched in 2014, it cost just 31 cents per share. Since then, its value has climbed by more than 60,000%.

Looking at the past five years (2020-2025), Ethereum has risen by a solid 46%. But that figure doesn’t tell the whole story. Ethereum has been subject to extreme volatility, peaking at nearly $5,000 in August 2025. That represents nearly 1.6 million percent growth from its original ICO—making that previous 60,000% increase seem modest by comparison.

Since then, ETH has seen gains exceeding 80% and losses surpassing 60%—that is to say, virtually every dramatic swing imaginable. Early 2026 brought a steep drop in Ethereum’s value due to several factors, including recession fears and Ethereum co-founder Vitalik Buterin selling millions of dollars worth of ETH.

The bottom line is that Ethereum can deliver both enormous gains and enormous losses, which is typical of other major cryptocurrencies too.

Ethereum vs. Bitcoin

In the cryptocurrency rankings, Ethereum trails far behind Bitcoin for the top spot.

But keep in mind, Ethereum wasn’t designed primarily to serve as a currency; its main purpose was to function as a decentralized computing platform. Ethereum has a wide range of real-world uses, and its developer community is huge. This appeals to investors because it offers growth potential beyond simply being an “alternative currency.”

Here’s an easy framework for understanding the difference between these two currencies:

• Think of BTC as digital gold—a straightforward currency designed to store and transfer value.
• Think of ETH as digital oil—the fuel that keeps decentralized apps and smart contracts running across the Ethereum network.

What is Ethereum staking?

Staking represents another feature that sets Ethereum apart from Bitcoin.

Before 2022, Ethereum’s network was secured by thousands of computers competing to solve random puzzles (called “proof of work”). When your computer successfully solved a puzzle, you’d earn some ETH as a reward. It sounds strange, but it proved effective for maintaining an honest ledger.

Because this approach burned significant amounts of electricity and didn’t really make sense, Ethereum chose to replace it with something called “staking.” With staking, you lock up your ETH as a security deposit to help verify transactions. In return, you earn a reward similar to what proof of work provided. Essentially, you’re earning interest on your staked amount.

What affects Ethereum’s price?

A few key things can affect Ethereum’s price:

• Investor speculation: Like most cryptocurrencies, Ethereum’s short-term price often moves with hype and trader sentiment. In the near term, excitement (or panic) can drive prices more than anything else.
• Network activity and DeFi growth: The more people use Ethereum, the more demand there is for ETH. A good example was the DeFi surge in 2020–2021, when heavy network use helped push prices up.
• Economic conditions: While Ethereum doesn’t always move in lockstep with interest rates or the stock market, the economy still plays a role. When people feel confident financially, they’re more open to putting money into assets like crypto.
• Regulation: Because crypto is still developing as an industry, new laws and regulations can have a big impact. Positive headlines can build confidence, while uncertainty tends to make investors cautious.
• Competition: Ethereum isn’t the only smart contract platform anymore. Projects like Solana and Avalanche offer faster or cheaper alternatives, so how Ethereum continues to evolve will help determine its long-term success.

How to buy and invest in Ethereum

There are many ways to invest in Ethereum with varying degrees of risk. Below are some of the most popular options.

Buy Ethereum on a crypto exchange

Buying ETH directly represents the most hands-on investment method. You’ll open an account with a cryptocurrency exchange and connect your bank account to purchase and store ETH in a digital wallet.

Invest in Ethereum ETFs

If directly managing crypto doesn’t appeal to you (think handling wallets and private keys) an Ethereum ETF could be a better option. These funds hold the crypto for you while their shares trade on stock exchanges just like traditional stocks.

Buy Ethereum-related stocks

You can invest in publicly traded companies with close ties to Ethereum as a way to gain exposure without directly owning ETH. This might include blockchain technology companies, firms holding substantial amounts of ETH on their balance sheets, and the like. This approach lets you benefit from Ethereum’s performance indirectly.

Open a crypto IRA that holds Ethereum

A crypto IRA allows you to hold Ethereum within a tax-advantaged retirement account. It functions like a traditional or Roth IRA, offering the same contribution limits and tax benefits.

Cryptocurrency prices today

Ethereum is one of the most ubiquitous cryptocurrencies, but it’s far from the only option. Consider the following options when deciding where to place your money.

• Bitcoin: Bitcoin is the first and most well-known cryptocurrency. It’s a decentralized digital currency built to serve as both a store of value and a peer-to-peer payment system.
• Tether: Tether is what’s known as a stablecoin. Its value is pegged to another asset, in this case, the U.S. dollar. Because of that, it tends to be much less volatile than Ethereum, though it also lacks the same potential for long-term growth.
• XRP: Created to make moving money across borders faster and cheaper than traditional methods, XRP offers near-instant transactions with minimal fees.

Is it a good time to invest in Ethereum?

Unlike established blue-chip stocks such as Exxon Mobil, Johnson & Johnson, or IBM, Ethereum is still a relatively young asset. There’s no guaranteed way to predict how ETH will perform in the years or decades ahead. Even so, its performance over the past decade has been incredible, and its usefulness goes far beyond that of a simple tradable token; it underpins a huge and expanding network of financial applications and developer tools.

Keep in mind, though, that Ethereum has a history of sharp downturns, so be prepared for volatility. It isn’t a good fit for investors with a low tolerance for risk. Stay aware of emerging blockchain competitors, and don’t overconcentrate your holdings. ETH is best viewed as a smaller, strategic component of a well-diversified portfolio.

Frequently asked questions

Key Takeaways:

• Ripple says institutional adoption of digital assets is happening now.
• Craddock states the focus has shifted to infrastructure and real-world use cases.
• Paris events showed strong momentum, with Ripple citing real industry energy.

Institutional Digital Asset Adoption Gains Momentum

Institutional adoption of digital assets is gaining momentum across global finance, marking a decisive shift as major firms move beyond experimentation into active deployment. Ripple’s managing director for the U.K. and Europe, Cassie Craddock, reinforced this momentum on April 20, pointing to Paris Blockchain Week 2026 and related industry events as evidence that large-scale crypto adoption is already underway.

Craddock stated on social media platform X:

“Institutional adoption of digital assets isn’t something that’s on the horizon. It’s happening now.”

“The debate has moved on. The focus is on infrastructure and real-world use cases. And the people I was fortunate enough to spend time with this week are the ones building it. Banks, asset managers, fintechs, and regulators, all discussing how to do this properly and at scale,” she further shared.

The executive tied that view to meetings held across the Ripple Roadshow Paris, Paris Blockchain Week itself, Mastercard Crypto Day at the Eiffel Tower, and Société Générale-FORGE’s event at the French Ministry of Finance. She explained that discussions no longer centered on whether institutions would engage with the sector. Instead, participants examined infrastructure, deployment standards, and real-world use cases that could support broader activity across regulated financial markets.

Paris Events Highlight Structured Industry Buildout

The comments suggest that digital asset conversations among large organizations are becoming more operational. Craddock referenced exchanges with speakers including David Durouchoux, Myles Harrison, and Frédéric Dalibard, while also highlighting the presence of banks, asset managers, fintechs, and regulators. That mix suggests several parts of the financial system are considering similar questions around scale and execution. Rather than focusing on abstract potential, the gatherings in Paris appeared to center on how institutions can build and apply digital asset systems in a structured way.

The Ripple executive added that the people involved in those meetings are “the ones building it.” She also concluded:

“The energy was real, the momentum even more so.”

These remarks reflect Ripple’s view that institutional interest is moving from long-term expectation to active development. By stressing implementation and participation from established financial groups, the post framed Paris Blockchain Week as a signal that digital asset adoption is advancing within mainstream finance.

A British national tied to the Scattered Spider cybercrime group pleaded guilty to hacking multiple companies via SMS phishing and stealing over $8 million in virtual currency from US victims.

Tyler Robert Buchanan, 24, of Dundee, Scotland, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.

In November 2024, US authorities unsealed criminal charges against Buchanan and four other alleged members of the Scattered Spider group, accusing them of using phishing text messages to steal employee credentials, breach company systems and steal cryptocurrency.

According to court documents, Buchanan and his co-conspirators conducted cyber intrusions and virtual currency thefts between September 2021 and April 2023.

The victims included interactive entertainment, telecommunications and technology companies, as well as business process outsourcing (BPO) and IT service providers, cloud communications firms, virtual currency companies and individual victims.

“As part of the scheme, Buchanan and his co-conspirators conducted Short Message Service (SMS) phishing attacks by sending hundreds of SMS phishing messages to the mobile telephones of a victim company’s employees. The messages purported to be from the victim company or a contracted IT or BPO supplier for the victim company,” the Justice Department said.

“The SMS phishing messages contained links to phishing websites designed to look like legitimate websites of a victim company or a contracted IT or BPO supplier. The websites then lured the recipient into providing confidential information, including personal identifying information (PII), and account usernames and passwords.”

In April 2023, police found on a digital device at Buchanan’s residence in Scotland the names and addresses of numerous victims, including a text file containing cryptocurrency seed phrases and login credentials for one account.

Buchanan has been in federal custody since April 2025 and faces up to 22 years in federal prison.

Co-conspirator Noah Michael Urban is serving a 10-year federal prison sentence and was ordered to pay $13 million in restitution after pleading guilty in April 2025 to fraud-related charges. Three other defendants charged alongside Buchanan, including Ahmed Hossam Eldin Elbadawy, Evans Onyeaka Osiebo and Joel Martin Evans, still face criminal charges in the case.

Scattered Spider is a cybercrime collective, also known as UNC3944, Muddled Libra and Octo Tempest, made up largely of young, native English-speaking hackers who use social engineering, including impersonating IT and help-desk staff, to gain initial access, bypass MFA, and compromise enterprise networks.

The group gained notoriety for its role in high-profile hacking and extortion attacks against Caesars Entertainment and MGM Resorts International, two of the largest casino operators in the US.

Although authorities have increased pressure on the group and arrested several members, including four they consider responsible for ransomware attacks targeting UK-based retailers last year, the group continues to operate, with new members replacing those arrested.