Reasons Why Ethereum Has Intrinsic Value

Ethereum has experienced significant growth and value over the past six years. Here are the key reasons for its inherent value:

1. Smart Contract Capability: Ethereum enables the execution of programmable smart contracts, powering decentralized applications (DApps) like DeFi and NFTs. It leads in the number of deployed DApps, especially in the DeFi sector.
2. New Type of Connectivity: Ethereum acts as an infrastructure that can revolutionize finance and technology, impacting various sectors. Its active developer community and user base contribute to its expanding network value.
3. Transition to Proof-of-Stake Model: Ethereum is shifting to a more scalable and energy-efficient proof-of-stake consensus mechanism with Ethereum 2.0. This enhances transaction processing capacity and discourages malicious behavior.
4. Improved Speed and Scalability: Ethereum offers faster block times and transaction processing compared to Bitcoin. The upcoming Ethereum 2.0 upgrade, incorporating shardchains, further improves scalability, potentially reaching 15,000 transactions per second.
5. Disinflationary Supply: Unlike Bitcoin, Ethereum has an unlimited supply controlled through a disinflationary mechanism. The shift to proof of stake reduces mining costs, encourages staking, and may lead to a deflationary effect on the circulating supply of Ether.
6. Decreased Correlation to Bitcoin: Ethereum's price is less dependent on Bitcoin's fluctuations. It is increasingly driven by its own catalysts, such as its role in the DeFi sector. The introduction of Ethereum futures indicates growing institutional adoption and solidifies its position in the market.