Where does Ethereum’s value come from?

Ethereum since launching in July, 2015, has become one of the most actively used blockchain networks, with ETH having the second largest market capitalisation in the crypto market only to Bitcoin. In doing so, Ethereum has a number of reasons as to why it has such great intrinsic value. 

A clear reason Ethereum holds great value and continues to rise as a de-facto speculative is the technology and infrastructure itself. Ethereum was the very first blockchain created and optimised for programmability and digital contracts. It is currently revolutionising DeFi, recreating the entire financial system by introducing Ethereum blockchain-based applications that now, and in the future, will impact on public services, governance and markets. The Ethereum ecosystem is forever changing, expanding and diversifying its growing network, including the movement from a proof-of-work model to a proof-of-stake model (ETH2). 

This then extends to Ethereums use for the creation of dApps, being decentralised products or services that exist and run on the Ethereum blockchain. Here, smart contracts are executed in order to power decentralised applications such as DeFi or nonfungible tokens (NFTs). DApps are like normal apps, but differ in the sense that they are run on a peer-to-peer network (ie Ethereum blockchain), meaning no one person or entity has control of the network. Here, the dApps are open-source and operate on their own without the need of an entity or individual controlling it, with records and all data made readily available to the public, as well as utilising cryptographic tokenomics to help keep the network and blockchain secure. From exchanges, to marketplaces, gaming, gambling, NFTs and now more than ever, DeFi, Ethereum has many of the larger dApps globally built on its blockchain, such as OpenSea, Uniswap, and MetaMask, as well as close to 3,000 total dApps. 

Ethereum also garners value from its gas fees, usage as collateral, use as a medium of exchange for trading, NFTs and its ability to be lent and borrowed.