TradingKey - Ethereum, as the world's largest smart contract platform, has attracted a vast number of developers and consistently ranks first in total value locked (TVL) among all public blockchains.

This dominance once led many to believe that Ethereum's market cap would eventually Bitcoins in. However, in recent years, this perspective has faded, and discussions on the topic have largely disappeared.

As the world’s largest smart contract platform, Ethereum has attracted a vast number of developers and consistently ranks first in total value locked (TVL) among all public blockchains. This dominance once led many to believe that Ethereum’s market cap would eventually Bitcoins in.

However, in recent years, this perspective has faded, and discussions on the topic have largely disappeared. Why has this shift occurred? What has happened to Ethereum? What does its future hold? Is ETH still a worthwhile investment?

What Is Ethereum (ETH)?

Launched in 2015 by Vitalik Buterin and his team, Ethereum is an open-source blockchain platform designed to support smart contracts and decentralized applications (DApps), aiming for automation and transparency without third-party intervention.

Similar to the relationship between BTC and Bitcoin, Ether (ETH), Ethereum’s native token, acts as the “fuel” for the entire ecosystem, used mainly for transaction fees and computational services on the network. In essence, if Ethereum is likened to a country, then ETH would be its legal currency, facilitating various transactional activities.

Ethereum

Bitcoin

Blockchain

Ethereum

Bitcoin

Token

ETH

BTC

Token Supply

121 million

21 million

Launch Year

2015

2009

Founder

Vitalik Buterin

Satoshi Nakamoto

Differences Between Ethereum and Bitcoin, Source: TradingKey.

What Are Ethereum’s Core Technologies?

If Bitcoin is credited with pioneering blockchain technology, then Ethereum can be said to have brought it out of the ivory tower and drove its adoption across different industries. At the heart of Ethereum are several core technologies that support its operations, enable smart contract execution, and DApp development.

Technology Component

Description

Features/Functionality

Blockchain Technology

Ethereum’s foundational architecture for storing all transaction information

Transparency, decentralization, and security

Smart Contracts

Self-executing code that automatically executes transactions based on conditions

Automation without intermediaries, enhancing efficiency

Ethereum Virtual Machine (EVM)

Environment for executing smart contracts

Ensures consistent code execution across all nodes

Consensus Mechanism

Proof of Stake (PoS)

Improves block generation efficiency and reduces energy consumption

DApps

Applications running on Ethereum

Provides services such as finance, gaming, and social platforms

Layer 2 Solutions

Second-layer architecture to enhance Ethereum’s scalability

Increases processing speed, reduces transaction fees, and improves user experience

What Are Ethereum’s Use Cases?

The possibilities for smart contract applications are vast, and Ethereum’s strong developer community has made it the leading platform for blockchain technology, encompassing use cases in finance, art, gaming, and more.

Application Area

Specific Scenarios

Representative Projects

Decentralized Finance (DeFi)

Lending platforms

Aave、Compound

Decentralized exchanges

Uniswap、SushiSwap

Stablecoins

DAI

Derivatives

Synthetix

Non-Fungible Tokens (NFTs)

Collectibles

CryptoPunks、Bored Ape Yacht Club

Gaming

Axie Infinity、Decentraland、The Sandbox

Supply Chain Management

Product tracking

Vechain

Food safety

IBM Food Trust

Social

Decentralized social networks

Minds

Decentralized identity

uPort

Content distribution

Livepeer

Charity & Public Welfare

donations

Giveth

Disaster relief

AidCoin

How Has Ethereum Performed in the Market?

Unlike Bitcoin, which is known as a store of value, Ethereum's primary focus is on smart contracts and decentralized applications, which has attracted a large number of developers and made it the no.1 public chain in terms of TVL.

According to data, there are currently 1,306 DApps on Ethereum, while the Bitcoin network only has 58. In terms of TVL, Ethereum's TVL is $44 billion, accounting for over 50%, far surpassing Bitcoin's 6% (approximately $5 billion).

TVL Share Across All Public Blockchains (as of March 11, 2025), Source: DefiLlama.

From an application perspective, it's clear that Ethereum ranks first among all public blockchains, far surpassing Bitcoin. However, in terms of market cap, Ethereum is still smaller than Bitcoin. As of now, Ethereum's market cap is $230 billion, compared to Bitcoin's $1.6 trillion. Moreover, since 2021, Ethereum's market share has been steadily decreasing, dropping from a peak of 20% to 8%, while Bitcoin's has increased from 40% to 60%.

ETH and BTC Market Cap Share, Source: CoinMarketCap.

In 2017 and 2020, the ICO and DeFi booms significantly boosted Ethereum's market cap, leading its community