Fundamental analysis of Ethereum involves evaluating the cryptocurrency’s underlying technology, development team, and overall market demand to determine its potential for future growth. Factors that are often considered in fundamental analysis have been listed below
|Market Capitalisation||The White Paper|
|Liquidity and Volume||The Team|
|Supply Mechanisms||The Competitors|
Overview of Ethereum Whitepaper
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps). It was proposed in 2013 by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine, and was launched in 2015.
Ethereum is built on the blockchain technology that underlies cryptocurrencies like Bitcoin, but it goes beyond the capabilities of a traditional cryptocurrency by allowing users to build and execute code on the blockchain. This enables the creation of complex, decentralized systems that can facilitate a wide range of applications, including financial transactions, supply chain management, voting systems, and more.
One of the key features of Ethereum is its support for smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein are transparent and immutable, which helps to increase trust and reduce the risk of fraud.
Ethereum also has a native programming language called Solidity, which is used to write smart contracts and DApps on the Ethereum platform. The Ethereum Virtual Machine (EVM) executes the code for these smart contracts and DApps, ensuring that they run as intended on the Ethereum network.
Ethereum is powered by a decentralized network of computers, or nodes, that validate transactions and contribute to the overall security and integrity of the network. These nodes are incentivized to participate in the network through a reward system, in which they receive a small amount of Ether (the native cryptocurrency of the Ethereum network) for each block of transactions they validate.
Overall, Ethereum is a powerful platform that enables the creation of complex, decentralized systems and has the potential to revolutionize a wide range of industries
Tokenomics refers to the economic and financial aspects of a cryptocurrency or token, including the token’s supply, distribution, and use cases. The tokenomics of Ethereum, the native cryptocurrency of the Ethereum network, are as follows:
Max Supply: ∞
Total Supply: 120,524,610
Circulating Supply: 120,524,610
Market Cap: $200,458,422,852
Fully Diluted Market Cap: $200,504,715,234
TPS (Transactions per second): 15 (average)
Developer Activity: High
TVL (Total Value Locked): US$23.56b
Total Staked: $19.0b
Distribution: ETH is distributed through a process called mining, in which miners compete to validate transactions and create new blocks on the Ethereum blockchain. In exchange for their efforts, miners are rewarded with a small amount of ETH for each block they validate. ETH is also distributed through initial coin offerings (ICOs) and other fundraising events.
Use cases: ETH is primarily used as a means of exchange and a store of value on the Ethereum network. It is also used to pay transaction fees on the Ethereum network, and it is required to interact with smart contracts and decentralized applications (DApps) on the Ethereum platform.
Overall, the tokenomics of Ethereum are designed to incentivize participation in the Ethereum network and to ensure the security and stability of the network. The limited supply and declining issuance rate of ETH are meant to increase the value of the token over time, while the use of ETH as a means of exchange and a store of value helps to increase its utility and adoption.
Ethereum is an open-source, decentralized computing platform and operating system that allows users to build and deploy decentralized applications (dApps) on the Ethereum blockchain. The Ethereum project was initially developed by a small team of developers led by Vitalik Buterin, a programmer and researcher who first proposed the idea for Ethereum in 2013.
The Ethereum team has grown significantly since its inception and now includes a wide range of developers, researchers, and other professionals working on the Ethereum project. Some key members of the Ethereum team include:
Co-founder and creator of Ethereum. Buterin is a researcher and programmer who has been involved in the cryptocurrency and blockchain space for many years.
Co-founder of Ethereum and CEO of ConsenSys, a software company that builds decentralized applications on the Ethereum platform. Lubin is a former Goldman Sachs trader and has been involved in the cryptocurrency space since its early days.
Co-founder of Ethereum and former Chief Technology Officer (CTO) of the Ethereum Foundation. Wood is a software engineer and one of the primary authors of the Ethereum white paper.
Lead developer at the Ethereum Foundation and one of the main contributors to the Go Ethereum (Geth) client.
Release manager for the Ethereum Foundation and one of the main contributors to the Parity Ethereum client.
There are many other members of the Ethereum team, including developers, researchers, and other professionals who work on the Ethereum project. Together, they contribute to the development and maintenance of the Ethereum platform, as well as the development of new features and functionality.
Some of the main competitors to Ethereum include:
EOS is a decentralized operating system that allows developers to build and deploy dApps. EOS is focused on providing high scalability and fast transaction speeds, making it a strong competitor to Ethereum in the dApp development space.
TRON is a decentralized computing platform that allows developers to build and deploy dApps. TRON is focused on providing low transaction fees and fast transaction speeds, making it an attractive platform for developers looking to build decentralized applications.
Cardano is a decentralized computing platform that allows developers to build and deploy dApps. Cardano is focused on providing a secure and scalable platform for building decentralized applications and is often compared to Ethereum in terms of its capabilities.
NEO is a decentralized computing platform that allows developers to build and deploy dApps. NEO is focused on providing a platform for the development of smart contracts and decentralized applications, making it a strong competitor to Ethereum in this space.
Tezos is a decentralized computing platform that allows developers to build and deploy dApps. Tezos is focused on providing a secure and scalable platform for building decentralized applications, and is often compared to Ethereum in terms of its capabilities.
There are many other blockchain platforms that offer similar functionality to Ethereum, and the competition in this space is constantly evolving. It is worth noting that Ethereum is one of the most widely-used and well-established platforms in the space, and has a large developer community and a strong track record of delivering on its promises.
Market Capitilization of Ethereum
As of January 24, 2022, the market capitalization of Ethereum is $197.64 billion. Market capitalization, or “market cap,” is a measure of the value of a cryptocurrency, calculated by multiplying the total number of coins in circulation by the current price of a single coin. Ethereum is currently the second-largest cryptocurrency by market cap, after Bitcoin.
Ethereum Supply Mechanism
Ethereum has a fixed maximum supply of ether, the native cryptocurrency of the Ethereum network. The maximum supply of ether is currently set at approximately 18 million ether per year.
Ethereum uses a proof-of-work (PoW) consensus mechanism, in which miners compete to validate transactions and create new blocks on the blockchain. In exchange for their efforts, miners are rewarded with a small amount of ether for each block they validate. This process helps to secure the network and incentivizes participation in the Ethereum network.
Over time, the reward for mining new blocks on the Ethereum network is set to decrease. The current block reward is 2 ether per block, but it is set to decrease by approximately 0.5 ether per block every year until it reaches a minimum of 0.5 ether per block.
It’s important to note that the supply of ether is not infinite and is expected to eventually reach its maximum supply. However, it is currently unclear when this will happen, as it will depend on a variety of factors, including the rate of adoption of Ethereum and the rate at which ether is lost or destroyed.
Ethereum Active Addresses
As of January 24, 2022, the number of active addresses on the Ethereum network is approximately 366,342. This number can fluctuate over time due to a variety of factors, including changes in the adoption and usage of Ethereum and changes in the overall level of activity on the network.
Ethereum Transaction Value
The transactional value of Ethereum refers to the total value of transactions processed on the Ethereum network within a given time period. This value can be an important indicator of the adoption and usage of Ethereum, as well as the overall level of activity on the network.
As of January 23, 2022, the avg transactional value of Ethereum over the past 24 hours is approximately $2,073. This value can fluctuate significantly over time due to a variety of factors, including changes in the price of ether (the native cryptocurrency of the Ethereum network), changes in the adoption and usage of Ethereum, and changes in the overall level of activity on the network.
As of January 24, 2022, the average transaction fee on the Ethereum network is approximately $0.45. It’s important to note that transaction fees on the Ethereum network (and other cryptocurrency networks) can fluctuate significantly over time due to a variety of factors, including changes in the adoption and usage of the network, changes in the overall level of activity on the network, and changes in the price of ether.
It’s also worth noting that the cost of using the Ethereum network can vary depending on the complexity of the smart contract or DApp being used. More complex contracts or DApps may require more computational work to process, which can result in higher transaction fees.
Ethereum Liquidity & Volume
As of December 25, 2022, Ethereum has high liquidity and volume. It is one of the most popular and widely traded cryptocurrencies and is listed on a large number of exchanges and other marketplaces. According to data from CoinMarketCap, the 24-hour trading volume of Ethereum as of January 24, 2022 is approximately $8.3 billion.
Ethereum GitHub Activity
GitHub is a popular platform for developers to collaborate on and share software projects. Ethereum is an open-source project, and its code is available on GitHub for anyone to view, download, and contribute to. As such, the activity on the Ethereum GitHub repository can be a good indicator of the development and progress of the Ethereum project.
As of January 24, 2022, the Ethereum GitHub repository has over 31,000 stars, indicating a high level of interest in the project, and over 3,800 contributors. In the past year, there have been over 9,000 commits, or updates to the codebase, and over 1,300 open issues, or areas of the code that need attention or improvement.