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Information about Ethereum (ETH)
Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.
Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.
The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.
Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.
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In Q1 2025, the cryptocurrency market saw a trading volume decline of 40.65%. Bitcoin (BTC) closed Q1 with a 10.52% loss, reversing previous gains. Ethereum (ETH) experienced a sharp drop of 43.85%, marking its lowest performance since 2018.
As 55 of the top 100 cryptocurrencies faced losses, the stablecoin market saw an 8.6% increase, indicating a preference for stability amidst volatility. Investor sentiment dipped to a 2-year low, reflecting caution among traders.
Due to rising market volatility, BlackRock is not endorsing crypto as a hedge. Jean Boivin, the head of the BlackRock Investment Institute, emphasized the instability and the risks involved, particularly amid uncertain trade policies from the Trump administration.
Following Trump’s tariff announcements, significant stock selloffs were observed, impacting major companies like Apple. BlackRock anticipates continued market pressure and suggests a defensive strategy, prioritizing short-term U.S. Treasurys.
In Q1 2025, Bitcoin’s value plummeted nearly 12%, falling from approximately 109,000 USD to around 93,500 USD by March’s end. Ethereum and Solana faced declines of 45% and 34%, indicating a widespread downturn in the cryptocurrency market.
Despite the price drop, Bitcoin’s market dominance increased from 53.54% to 62.8%, reflecting its relative resilience. Observers highlighted diminishing user sentiment and significant unrealized losses as contributing factors to the downturn.
Ray Dalio warned of a deeper systemic collapse influenced by broader issues beyond trade tariffs. He emphasized the need to recognize significant shifts in global economic and political structures.
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