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Ethereum (ETH)

Decentralized smart contract platform

Rank #2
Market Cap: $414.2B
Price: $3,450.00
Last updated: May 16, 2025
0

HCS Score Summary

81
/100
✓ Halal

Ethereum meets Halal Crypto Standard requirements

1

Legitimacy & Risk Assessment

Verify project authenticity and identify critical red flags before Sharia screening
✓
Team Verification
Founding team publicly identified
Pass
✓
Security Audits
Multiple third-party audits
Pass
✓
Development History
Active development since 2015
Pass
✓
Community Trust
Established global community
Pass
✓
Regulatory Compliance
No regulatory red flags
Pass
✓
Transparency
Open-source code, public roadmap
Pass
✓ Legitimacy Clear
Ethereum meets all legitimacy criteria. No red flags detected. Asset is eligible for detailed Sharia screening.
2

Layer 1: Mandatory Sharia Screening

Absolute prohibitions. Any violation = Haram classification.
✓
Interest-Based Core
No lending/borrowing protocol
Passed
✓
Gambling/Betting
No prediction markets built-in
Passed
✓
Haram Industry
Neutral infrastructure layer
Passed
✓
Guaranteed Returns
No fixed yield or interest promises
Passed
✓
Synthetic Products
No synthetic interest instruments
Passed
✓ Layer 1 Clearance
All mandatory Sharia checks passed. Asset is eligible for Layer 2 detailed evaluation.
3

Layer 2: Detailed HCS Scoring

Quantitative evaluation across 7 Islamic finance factors.
Riba Exposure Risk 25%
22/25
Absence of interest-based mechanisms or yield products
Gharar / Uncertainty 15%
13/15
Clarity in contracts, absence of ambiguous terms
Maysir / Speculation 15%
12/15
No pump-and-dump mechanics or meme speculation
Business Activity 15%
13/15
Core activity is permissible under Islamic law
Utility / Real Use 10%
8/10
Genuine economic value and real-world utility
Tokenomics Fairness 10%
8/10
Fair distribution, no exploitative token mechanics
Transparency & Governance 10%
7/10
Open-source code, clear governance, team disclosure
4

Staking & Reward Mechanisms

Evaluate Sharia compliance of staking and earning mechanisms
!
Reward Classification
Variable yield from validation
Monitor
ℹ
Current APY
3.2% variable staking reward
~3.2%
!
Lock-up Period
32 ETH minimum, flexible unstaking
Review
✓
Validator Decentralization
Top 10 validators <8% of stake
Pass
✓
Opportunity Cost
Explicit withdrawal mechanism
Pass
!
Riba Assessment
Scholars debate variable returns
Consult
⚠ Staking Consideration
Ethereum staking rewards are variable (not fixed interest), which scholars generally consider more compliant with Sharia. Consult personal Islamic advisors on participation.
5

Final Verdict

81
/100
Classification
HALAL
Ethereum passes all legitimacy checks and meets HCS requirements. The asset is Sharia-compliant for Muslims seeking to invest in decentralized finance infrastructure.
Disclaimer: This evaluation is for informational purposes only. Always consult with qualified Islamic scholars before making investment decisions.

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