Ether (CRYPTO: ETH), the native token of the Ethereum blockchain, is the world's second-most-valuable cryptocurrency after Bitcoin (CRYPTO: BTC). A $1,000 investment in its earliest trade at $0.26 per token in Aug. 2015 would be worth $8.05 million today. Investors might be reluctant to buy Ether after those millionaire-making gains, but a fresh $1,000 investment in the cryptocurrency could still deliver life-changing returns.
What sets Ether apart from other cryptocurrencies?
Ether was once a proof-of-work (PoW) cryptocurrency that could be mined like Bitcoin, but it transitioned to the more energy-efficient proof-of-stake (PoS) mechanism during "The Merge" in 2022. After that upgrade, Ether could no longer be mined, but it could be staked (locked up to earn interest-like rewards). It also gained support for smart contracts, which are used to develop decentralized apps (dApps), non-fungible tokens (NFTs), and other crypto assets.
Unlike Bitcoin, which has a maximum supply of 21 million tokens, Ether has a circulating supply of 121 million tokens with no supply limit. Therefore, it's valued mainly for the growth of its developer ecosystem rather than the scarcity of its tokens.
Ethereum hosted 31,869 active developers at the end of 2025, making it the largest blockchain-based developer ecosystem. Ethereum's native Layer 1 (L1) blockchain can't match the speeds of newer PoS blockchains, such as Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA). Still, its Layer 2 (L2) "rollups" -- which bundle together multiple transactions to process them off-chain at higher speeds -- are helping it narrow that gap.
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