What can you actually do with Ethereum in 2026?

Feb 27•6 min read

The question every ETH holder eventually asks

You've heard of Ethereum. Maybe you own some. But when someone asks what it actually does, the answer usually comes out vague — something about smart contracts, something about DeFi — and trails off.

Bitcoin has a clean story: digital gold, fixed supply, store of value. Ethereum's story is harder to summarize, because it's doing more things at once.

This article breaks down what Ethereum actually is, what people use it for today, and how it fits into the bigger picture of building wealth with digital assets.

Ethereum is not just a cryptocurrency

Ether (ETH) is Ethereum's native token — but Ethereum itself is a network. Think of it as a global computer that anyone can build on, program, and use, without needing permission from a company or government.

What makes it different from Bitcoin is programmability. Bitcoin does one thing exceptionally well: it moves value from one person to another. Ethereum can do that too, but it can also run code. That code — called smart contracts — executes automatically when certain conditions are met, without any intermediary in the middle.

That single capability — programmable, self-executing agreements — is what makes Ethereum the foundation for almost everything interesting happening in crypto right now.

What can you actually do with Ethereum?

Send money anywhere, instantly

The most basic use case. You can send ETH to anyone in the world in minutes, at any hour, without a bank account, wire transfer, or correspondent banking system. No business hours. No three-day settlement window.

For people in countries with unstable currencies or limited banking infrastructure, this alone is transformative.

Access decentralized finance (DeFi)

DeFi is the collective name for financial services that run on Ethereum without a central institution controlling them. Lending, borrowing, trading, earning yield — all of it available to anyone with an internet connection, 24 hours a day.

The Ethereum Foundation reaffirmed its commitment to DeFi in February 2026, describing it as "stablecoins anyone can hold, yield without a private banker, markets that never close and can't exclude you." That's the vision, and the infrastructure to support it is already live.

Popular DeFi protocols like Aave, Compound, and Uniswap collectively manage billions in assets — and all of them are built on Ethereum.

Use and hold stablecoins

Most of the world's major stablecoins — including USDC and USDT — run as tokens on the Ethereum network. When you hold $1 in USDC, that dollar is sitting on Ethereum's blockchain.

This matters because stablecoins are becoming serious financial infrastructure. Meta is reportedly integrating stablecoin payments across Facebook, Instagram, and WhatsApp in the second half of 2026. Visa already processes USDC settlement over Ethereum-based infrastructure. The digital dollar runs largely on Ethereum rails.

Stake ETH and earn rewards

Since Ethereum moved from proof-of-work to proof-of-stake in 2022, ETH holders can stake their tokens to help validate the network and earn rewards in return. Over 30% of all ETH is now staked, making it one of the largest staking ecosystems in crypto.

Staking earns you new ETH over time — a yield paid by the network itself for participating in its security.

Own and trade digital assets (NFTs)

NFTs — non-fungible tokens — are unique digital assets recorded on Ethereum that prove ownership and authenticity. They started with digital art but have expanded to music royalties, event tickets, gaming items, and real-world asset tokenization.

Each NFT is created through a smart contract on Ethereum, and ownership is publicly verifiable on-chain.

Power AI agents and the next economy

This is where Ethereum is heading in 2026. AI agents — autonomous software that can execute tasks, make transactions, and manage portfolios without human intervention — need a native currency to operate. Ethereum and its stablecoin ecosystem are becoming that currency layer.

Ethereum vs. Bitcoin: different tools, different jobs

A common question is whether to choose one or the other. The more useful frame is understanding what each one does.

Neither replaces the other. Many investors hold both Bitcoin as a long-term reserve and Ethereum as the active, productive layer of their portfolio.

What Ethereum holders can do on Nexo

Ethereum isn't just something to hold and wait. Held on a platform like Nexo, it can work for you.

The same logic that makes Ethereum the most useful programmable network in crypto applies to how you hold it: idle assets are a missed opportunity.

Frequently asked questions

1. What is Ethereum used for?

Ethereum is used for sending money globally, powering decentralized finance (DeFi) applications, hosting stablecoins like USDC and USDT, minting and trading NFTs, staking to earn rewards, and increasingly as the infrastructure layer for AI agents and tokenized real-world assets.

2. What is the difference between Ethereum and Bitcoin? 

Bitcoin is primarily a store of value with a fixed supply — digital gold. Ethereum is a programmable network where developers can build applications. Bitcoin does one thing well. Ethereum does many things through smart contracts.

3. What is ETH used for exactly? 

ETH is Ethereum's native token. You use it to pay transaction fees on the network (called gas fees), stake to earn rewards, and interact with DeFi protocols. It's also held as an investment and used as collateral for borrowing on platforms like Nexo.

4. Is Ethereum a good long-term investment? 

Ethereum has a growing ecosystem, a large and active developer community, and increasing institutional adoption — Coinbase custodies over 80% of US Bitcoin and Ethereum ETF assets. Like all digital assets, it carries significant risk and volatility. This is not financial advice; independent judgment and professional consultation are recommended.

5. What are smart contracts? 

Smart contracts are programs deployed on Ethereum that execute automatically when certain conditions are met — without a bank, lawyer, or other intermediary. They power DeFi protocols, NFT marketplaces, stablecoins, and most of what makes Ethereum useful.

6. Can you earn interest on Ethereum? 

Yes. Platforms like Nexo offer daily interest on ETH holdings through Flexible and Fixed-term Savings. Rates vary by asset, Loyalty Tier, and jurisdiction.

7. What is Ethereum staking? 

Staking means locking up ETH to help validate transactions on the Ethereum network. In return, stakers earn newly issued ETH as a reward. Over 30% of all ETH is currently staked, reducing the liquid supply available on exchanges.

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