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Ethereum
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=== '''''Utility''''' === '''Utility as a Commodity''' Ether is the native asset of the Ethereum platform — meaning it’s used in order to process any transaction or state change on the blockchain.Users and developers use Ether as “gas” in order to “fuel” the applications that run on Ethereum; this “gas” is sent to the miners as a reward for validating the transaction.Each computation has a set gas price — meaning the more complex the transaction, the more expensive it’ll be. For example, sending Ether from one wallet to another is relatively inexpensive compared to doing a flash loan to take advantage of a DEX liquidity pool arbitrage opportunity.Since Ether is used as gas for the network, it intrinsically has utility vs. a pure currency / store of value like Bitcoin.Thus, people want to hold Ether — similarly how people want to hold oil in order to power machinery.As the Ethereum network is used more and more, the demand for Ether will increase. And as I mentioned previously, the network is constantly breaking ATHs in terms of network traffic and transactions. '''Utility as a Base Pair''' A large reason for Bitcoin’s run up in 2017 was due to it being the only base pair with other altcoins. Back then, there were few fiat on-ramps, so investors had to purchase Bitcoin and then swap with the other coin that they actually wanted.When looking at DeFi — especially DEXes on Ethereum like Uniswap and Sushiswap — the main trading pair of these new ERC20 tokens is still with ETH.The implication is that for nearly everyone who is trying to trade on a DEX, or trying to get access to a new coin that isn’t listed on centralized exchanges like Coinbase or Binance — they have to first hold ETH before swapping, if they want access to the most liquidity and thus the least amount of slippage (i.e., the ‘cheapest’ way to get that coin). '''Utility as a Store of Value''' Of course, it stands within reason that — with the inherent utility of ETH and the loads of upcoming news about improving Ethereum — people would see Ether as an attractive store-of-value investment in order to capitalize on the potential growth of the Ethereum platform.In the past few days, we’ve seen Ether ETFs raise hundreds of millions of dollars of capital — with the likes of CI Galaxy and prominent Canadian investment firms getting involved.Like Bitcoin, institutional investors and laypeople retail investors want to get exposure to an asset that will, in theory, be a hedge against fiat inflation.
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