Ethereum

Halal Rating :
Comfortable
Last Price $3,400.09 Last updated:
Rank 2
1D Change 1.78 %
Market Cap $409.55b
Circulating supply 120,453,571
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • PoS
  • Smart Contracts
  • Ethereum Ecosystem
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  • Layer 1

Understanding Intended Utility

Ethereum was created as a decentralized computing platform that enables smart contracts and decentralized applications (dApps). Its native token ETH serves multiple purposes: paying for transaction fees (gas), serving as collateral in DeFi protocols, and acting as a store of value. The platform aims to be the foundation for a decentralized internet (Web3).

Current Usage and Adoption

Ethereum remains the dominant smart contract platform with over 500,000 daily active users. It hosts thousands of dApps across various sectors including decentralized finance (DeFi), NFTs, gaming, and enterprise solutions. After transitioning to Proof of Stake in 2022, ETH is also used for network validation through staking.

Token Distribution and Founder Analysis

The initial distribution included a public sale where 72 million ETH were sold. The Ethereum Foundation and early developers received approximately 12 million ETH. Current circulation exceeds 120 million ETH with a relatively decentralized distribution. Founder Vitalik Buterin maintains high community involvement and continues contributing to development.

Development Activity

Ethereum has the largest developer community among all blockchain platforms with over 4,000 monthly active developers. Regular protocol upgrades continue to improve scalability and efficiency. The transition to Proof of Stake (The Merge) and ongoing development of scaling solutions demonstrate strong technical progress.

Revenue Model Analysis

Network fees are paid in ETH for transaction processing. These fees are now distributed to validators through staking rather than miners. The staking mechanism complies with Islamic principles as it represents legitimate work in securing the network and processing transactions, not interest-bearing loans.

Additional Considerations

While Ethereum hosts some applications that may involve prohibited activities (gambling dApps, interest-based lending), the base protocol itself does not mandate or directly facilitate these activities. The platform is neutral infrastructure that can be used for both permissible and impermissible activities, similar to the internet itself.

Crypto Impact

To assign a comfort level investing in Ethereum from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Ethereum.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

We will review your contribution for accuracy before publication.

Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.

You only have one vote per asset so use it wisely.

You can change your vote if you change your mind.

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