Ethereum

Halal Rating :
Comfortable
Last Price $3,423 Last updated:
Rank 2
1D Change 4.75 %
Market Cap $412.59b
Circulating supply 120,503,369
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • PoS
  • Smart Contracts
  • Ethereum Ecosystem
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Purpose and Utility

Ethereum is a decentralized computing platform that enables the creation and deployment of smart contracts and decentralized applications (dApps). Its native cryptocurrency, ETH, serves multiple purposes: paying for transaction fees (gas), serving as collateral in various protocols, and acting as a store of value.

Current Usage

Ethereum remains the dominant smart contract platform, hosting thousands of decentralized applications across various sectors including decentralized finance (DeFi), NFTs, gaming, and enterprise solutions. The network processes millions of transactions daily and has a thriving developer ecosystem.

Business Model Analysis

The core Ethereum protocol facilitates permissionless, transparent transactions and smart contract execution. While some applications built on Ethereum may involve prohibited activities (gambling, interest-based lending), the base protocol itself is neutral infrastructure technology.

Development Activity

Ethereum maintains strong development activity, having successfully completed its transition to Proof of Stake in 2022 (The Merge). The platform continues to implement major upgrades, including the recent Shapella upgrade enabling staking withdrawals and upcoming improvements for scalability.

Token Distribution

ETH had a relatively fair launch through a public sale in 2014. The Ethereum Foundation and early developers received a minority allocation. Currently, ETH is widely distributed among millions of holders, with no single entity controlling a dominant share.

Revenue Model

The primary revenue mechanism is transaction fees paid in ETH, which are partially burned since EIP-1559 and partially paid to validators. Staking rewards come from new issuance and are not interest-based, but rather compensation for securing the network.

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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