Why is this important: Ethereum is one of the few major cryptocurrencies that can still be mined using GPUs, but that is expected to change later this year when it switches to a proof-of-stake model. At this point, we might finally see miners ditching high-end GPUs, which could help stabilize the gamer market. But with the chip shortage and supply chain issues still looming, don’t expect the tide to change overnight.
The second largest cryptocurrency by market cap has lost almost a quarter of its value over the past week.
Ethereum hit a seven-day high of $ 3,879 on Jan.4 before losing several hundred dollars the next day. On Monday morning, Ethereum had dipped to around $ 2,939 before recovering slightly to $ 3,044.13 where it is at the time of writing. Wednesday’s high to earlier in the day low translates to a 24.23% drop in value.
Ethereum hit an all-time high in early November 2021 when it peaked at $ 4,865.57. In just three months, the crypto has lost a hair of over 37% of its total value.
It’s a similar story for other cryptocurrencies, although the losses aren’t that extreme. Bitcoin is down around 12% on the week, going from a high of around $ 47,359 to around $ 41,515. Bitcoin Cash has lost around 18% of its value over the past few days while Litecoin is down just over 17%.
Of course, this kind of ebb and flow has become common in the cryptocurrency space and has resulted in many big winners and losers over the years.
