ETH also participates in network consensus through staking mechanism

The native currency of Ethereum, Ethereum (ETH), is not only the trading medium on the platform, but also the economic cornerstone that supports the entire ecosystem. As the fuel for executing smart contracts, ETH is used to pay transaction fees (Gas Fee), and its consumption directly reflects the degree of network resource utilization. Unlike Bitcoin’s pure monetary attribute, the value of ETH is more closely linked to platform activity – with the explosive growth of DeFi, NFT and other applications, ETH demand continues to rise, making it the second largest cryptocurrency after Bitcoin.
In addition, ETH also participates in network consensus through a staking mechanism. After The Merge in 2022, holders can become verification nodes by depositing 32 ETH and receive staking profits. The deep integration of this deflationary design (with some transaction fees destroyed) and practical scenarios has gradually transformed ETH from a trading token to a core asset of blockchain infrastructure.

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