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A Decade of Blockchain Revolution
Over the past decade, Ethereum has transformed the blockchain landscape.
From its initial coin offering to becoming the second largest cryptocurrency by market cap, Ethereum has evolved steadily, implementing major upgrades such as moving to Proof-of-Stake (PoS) and Layer 2 scaling solutions, and cementing its position as the cornerstone of the Web3 ecosystem despite the emergence of several alternatives over the years.
Ethereum’s 10-Year Journey
Reflecting on his origins, Ethereum Foundation researcher Justin Drake underlined that Ethereum’s initial coin offering (ICO) began on July 22, 2014, with a price of 2,000 ETH per unit sold per BTC in a completely permissionless environment, free from venture capital influence or buyout periods.
This rate was applied only for the first 14 days. After that, the price started to diminish gradually, with each subsequent day offering less ETH per unit. By the end of the sale period on September 2, 2014, the rate had dropped to 1337.077 ETH per unit.
Fast forward to the present, and the value dynamics have changed dramatically. 1 BTC now buys less than 20 ETH. Drake pointed out that few assets have matched Bitcoin’s performance over the past decade, and even fewer have surpassed it by a factor of 100.
Ethereum has evolved into a crucial component of the blockchain ecosystem. So far, 4.3 million ETH have been burned in gas fees since the introduction of EIP-1559, and many more are expected to be burned with the introduction of blob transactions.
Additionally, Ethereum’s staking mechanism now guarantees $100 billion in economic security, ten times more than Bitcoin, and supports DeFi and restaking, greatly improving the economic bandwidth of the Internet of Value.
Ethereum’s Institutional Journey Begins
All eyes are on the Ether ETF, which Drake says has further cemented Ethereum’s growing recognition as a digital commodity, marking the beginning of the cryptocurrency’s institutional journey.
The Chicago Board Options Exchange (CBOE) debut five spot Ethereum exchange-traded funds (ETFs) on July 23, pending final regulatory approval, the agency announced last week. This follows the U.S. Securities and Exchange Commission (SEC) approval on May 23, which greenlit the listing of several spot Ether ETFs.
The five Ethereum ETFs slated for launch are 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
To attract investors and secure a market position, most ETH ETF issuers are planning to offer temporary fee reductions or waivers once the funds start trading.