Ethereum not only provides developers with a blockchain on which to build their applications; it also gives them a convenient way to fund their projects natively on the network in the form of tokens. These tokens, often referred to as ERC-20 tokens — which means they are compatible across the Ethereum platform — function similarly to shares of a company. Users buy tokens to help fund software projects, while also receiving investment incentives like financial rewards or voting rights.
Ethereum doesn’t fall prey to these same pitfalls because it is more than a currency; it’s a platform that provides a valuable service. As long as Ethereum continues to see investment from developers who want to build on the network, the value of Ether is supported by meaningful capital. If Bitcoin is like fiat, Ether is like gold; its value is more stable because it’s partially backed up by an intrinsic usefulness that Bitcoin doesn’t have. This is at least part of the reason Ethereum proved more resilient during the recent crash.
As more and more dapps take advantage of the Ethereum blockchain in new and interesting ways, its value should continue to increase. And assuming it can continue to fend off the dramatic swings that dominate the space, it may be setting itself up to become the industry leader
