The Big Whale

Ethereum

What is Ethereum?

Ethereum is a decentralised smart contract platform, launched in 2015, that enables autonomous applications to be created without intermediaries. Unlike Bitcoin, which is centred on currency, Ethereum is designed as a programmable global computer, where developers can deploy smart contracts managing finance, games, identities or tokenised assets. It is based on a secure public blockchain, currently in Proof of Stake. Its native asset, the ether (ETH), is used to pay transaction fees (gas) and participate in staking. Ethereum is at the heart of DeFi, NFT and asset tokenisation, and is gradually establishing itself as the basic infrastructure for digital finance.

How does Ethereum work?

Ethereum is an open source blockchain platform that allows developers to build and deploy decentralised applications (dApps). The way Ethereum works is based on smart contracts, which are programs that are executed exactly as they were set up by their creators, with no possibility of censorship or third parties.

Ethereum's native currency, Ether (ETH), is used both as a payment method and as 'fuel' for transactions on the network. Unlike Bitcoin, which aims to become a global digital currency, Ethereum focuses on programmability with rules and conditions defined in the blockchain.

It is also worth noting that Ethereum is in the process of evolving to Ethereum 2.0, a major upgrade that will improve energy efficiency by moving from the Proof of Work model to the Proof of Stake model, while its ability to maintain its position in the cryptocurrency market remains to be seen.

What are the main differences between Ethereum and Bitcoin?

Although both are based on blockchain technology, Bitcoin focuses primarily on its function as a store of value and payment system, while Ethereum serves as a decentralised application platform. Ethereum enables the development of smart contracts, giving it greater flexibility for a variety of use cases such as decentralised finance (DeFi), NFTs and tokenisation.

Why is Ethereum important in blockchain?

Bitcoin is often compared to gold because of its programmed scarcity (cap of 21 million bitcoins) and its ability to serve as a store of value. Like gold, Bitcoin is seen as a hedge against inflation and a safe haven in times of uncertainty

Ethereum is often seen as the foundation of decentralised finance and blockchain applications thanks to its ability to execute smart contracts in a decentralised manner and integrate multiple players into a transparent, secure and trustless system.

What percentage of the ETH supply is staked?

About 27% of the total ETH supply is currently staked, i.e. more than 33 million ETH. Staking is possible via individual validators (solo staking), centralised platforms (such as Coinbase or Binance) or liquid solutions (Lido, Rocket Pool). This development enhances network security, while creating pressure on the circulating supply of ETH.

How many transactions are processed each day on Ethereum?

The Ethereum network processes an average of between 1 and 1.3 million transactions per day. These transactions cover a wide variety of uses: simple ETH transfers, DeFi interactions, NFT mint, stablecoins, on-chain games and even identity management. This diversity positions Ethereum as the most active general-purpose network in the sector, far beyond a simple means of payment.

What are the average costs of using Ethereum?

Ethereum gas fees vary greatly depending on demand. For a simple transaction, costs are generally between $1 and $5, but more complex operations (DeFi, NFT, multi-signature contracts) can cost up to $20 or more. The rise of Layer 2 has allowed these costs to be divided by 10 to 100, making Ethereum much more competitive in 2025.

What are the main Layer 2s on Ethereum?

The most active Layer 2s in 2025 are Arbitrum, Optimism, Base, zkSync and Starknet. They allow transactions to be executed outside the main layer, reducing costs while maintaining L1 security. These networks now account for a significant proportion of Ethereum activity.

What is the weight of DeFi on Ethereum?

Ethereum remains the undisputed leader in decentralised finance, concentrating more than 60% of global TVL, or between $50 billion and $70 billion depending on the period. Dominant protocols such as Aave, MakerDAO, Lido and Uniswap continue to attract institutional and retail users thanks to their depth of liquidity and proven track record.

What are the main DeFi use cases on Ethereum?

The main DeFi applications on Ethereum include digital asset lending and borrowing, decentralised exchanges (DEX), liquid staking, algorithmic or collateralised stablecoin creation, and yield farming strategies. These services are becoming more accessible thanks to Layer 2, while retaining the security guarantees of L1.

What are the risks associated with DeFi on Ethereum?

DeFi users are exposed to several risks:

Bugs in smart contracts,
Attacks via manipulation of oracles,
Exploits via flash loans,
Failures in decentralised governance.
Despite a more mature ecosystem, code security and regular auditing remain crucial requirements for maintaining trust.

What types of assets are tokenised on Ethereum?

Ethereum hosts a growing range of Real-World Assets (RWAs) in the form of tokens: bonds, US Treasuries, real estate, unlisted equities, precious metals and debt. These assets are issued via standards such as ERC-20, ERC-3643 or ERC-1400, enabling native programmability, transparency and interoperability with DeFi.

Which institutional players are using Ethereum for tokenisation?

Major players such as JP Morgan (Onyx), Franklin Templeton, Societe Generale, and BlackRock have launched or experimented with tokenisation projects on Ethereum or its Layer 2. These initiatives aim to modernise capital markets, reduce issuance costs and facilitate real-time secondary liquidity.