ETH
Native asset of the Ethereum network used to pay fees.
ETH, also called ether, is the native asset of the Ethereum blockchain. It pays transaction fees, supports proof-of-stake security, and acts as a base asset across Ethereum applications. ETH is not an ERC-20 token, although it can be converted into wrapped ETH for compatibility with token interfaces.
Every Ethereum transaction consumes gas based on computation and storage. The sender pays the effective gas price in ETH. Under EIP-1559, the base-fee portion is burned and a priority fee generally goes to the block proposer. A user therefore needs ETH in the sending account even when transferring or swapping another token.
Validators deposit ETH to participate in consensus and earn protocol rewards. Dishonest behavior can lead to slashing, while downtime reduces returns. Individual users can stake through solo validators, pooled protocols, or custodial services. Each route has different technical, liquidity, counterparty, smart contract, and regulatory risks.
ETH matters throughout decentralized finance and NFTs. It supplies liquidity, serves as loan collateral, settles asset sales, and backs many Layer 2 transactions indirectly. Wrapped ETH, or WETH, represents ETH through an ERC-20 contract so applications can handle it like other tokens. Users must unwrap WETH to obtain native ETH for base-layer gas.
ETH on another network may be a native fee asset, a bridged representation, or an exchange balance. Matching ticker symbols do not guarantee identical custody or redemption. Before transferring, verify the network, token contract where applicable, bridge, and destination support. Sending through an unsupported network can make recovery difficult.
ETH carries price, custody, protocol, and application risks. Secure valuable holdings with offline recovery and hardware signing, and keep daily dapp activity separate. Avoid unsolicited staking offers and guaranteed returns. Network upgrades can change issuance and fee behavior, while demand and wider markets affect price. ETH is essential infrastructure for Ethereum, but owning it does not provide company equity, guaranteed yield, or protection from loss.
Users should keep transaction records because staking rewards, swaps, bridges, wrapping, and ordinary transfers may receive different accounting or tax treatment. Current local guidance may be necessary.
Wallet interfaces should distinguish native ETH from wrapped or bridged tokens clearly so users understand which asset can pay network fees.
Frequently asked questions
- ETH pays Ethereum transaction fees, secures proof-of-stake consensus when deposited by validators, and serves as a widely used settlement and collateral asset. Applications price NFTs, liquidity pools, loans, and other positions in ETH. The asset can also be transferred as payment. Each use introduces different market, custody, smart contract, or staking risks.
- Use a reputable wallet, verify addresses and networks, and keep recovery information offline. Hardware signing is appropriate for valuable holdings, while separate hot or burner wallets can isolate routine app activity. Test large transfers with a small amount and retain enough ETH for future gas. Custodial storage adds provider risk; self-custody adds key-management responsibility.
- Ethereum fees depend on gas used, the protocol-calculated base fee, and the priority fee offered to the validator. Network demand raises the base fee when blocks exceed the target. Contract complexity changes gas use, so a swap costs more than a simple transfer. Wallet estimates can change before inclusion, and reverted transactions still consume gas.