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Value (ETH) Meaning

When people refer to the value of ETH, they generally mean the price of Ether, Ethereum’s native cryptocurrency, denominated in a reference asset such as US dollars, euros, or Bitcoin. ETH’s value fluctuates based on market supply and demand, speculation, network usage, and macroeconomic factors like interest rates and risk appetite.

Within the Ethereum ecosystem, the value of ETH also has utility: it is required to pay gas fees, stake as collateral in DeFi protocols, and participate in consensus if acting as a validator.

As Ethereum transitions to full proof-of-stake and rolls out scaling solutions, some analysts believe ETH’s value will be influenced by its role as both a store of value and a productive asset that yields staking rewards.

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