Top Ethereum Ecosystem tokens by market capitalization

Bitcoin and Ethereum both utilize blockchain technology but have distinct objectives. Bitcoin was created as a decentralized digital currency, while Ethereum's purpose is to offer a platform for creating and deploying smart contracts and DApps.

Ether (ETH) is Ethereum's native cryptocurrency. It acts as the "fuel" for executing smart contracts and running DApps on the Ethereum platform, rewarding miners for ensuring network security and transaction validation.

Ethereum is the go-to platform for DeFi projects. It facilitates the development of decentralized financial tools and systems, such as lending and borrowing platforms and decentralized exchanges, eliminating the need for traditional intermediaries like banks.

Gas fees on Ethereum represent charges users incur to cover the computational effort needed to validate and complete transactions on the network. These fees vary, rising with increased network demand.

Elevated Ethereum gas fees result from surges in network activity. As transaction numbers grow on the Ethereum network, the need for computational resources escalates, prompting users to pay higher fees for transaction prioritization. Spikes in trading, significant DeFi movements, or popular token launches often lead to such network congestion.

Scalability denotes the network's capacity to manage an increasing volume of transactions efficiently. Currently, Ethereum can handle only a restricted number of transactions per second (TPS). This constraint occasionally results in network bottlenecks, prolonged transaction periods, and escalated fees. Ethereum 2.0 and Layer 2 solutions are in development to tackle these scalability issues.

The Ethereum ecosystem is a destination for meme coin projects due to its popularity and user-friendly token creation process. Meme coins, blending the nature of internet memes with the allure of cryptocurrency, easily catch attention and spread. The simplicity of crafting an ERC-20 token on Ethereum means anyone with a bit of technical knowledge can jump in. Further fueling their prevalence are hopeful investors chasing quick profits and enthusiastic communities backing these projects. Though meme coins offer an entertaining introduction to crypto, their volatile nature demands cautious investment.