Why does Ethereum have an intrinsic value?

1.

What is Ethereum?

Ethereum is a decentralized, open-source blockchain and the first network to launch smart contract functionality.

Ethereum was launched in July 2015, and in the span of a few years, it increased considerably in value due to its wide range of decentralized application (DApp) offerings. The explosive rise of decentralized finance (DeFi) and nonfungible tokens (NFTs) have sealed its success as the most actively used blockchain network.

Furthermore, its native currency, Ether (ETH), has solidly maintained its second position by market capitalization and daily volume in the cryptocurrency space.

2.

What is Ethereum’s intrinsic value?

Before identifying what is unique about Ethereum, let us first explore the definition of intrinsic value and how it applies to digital currencies like Ethereum.

In finance, the intrinsic value represents the perceived or actual value of an asset or a currency. It should not be confused with the market price because assets can be over or undervalued.