Why it matters: Ethereum is one of the few major cryptocurrencies that is still viable to mine using GPUs, but that’s expected to change later this year when it shifts to a proof-of-stake model. At that point, we may finally see miners abandon high-end GPUs which could help stabilize the market for gamers. But with the chip shortage and supply chain issues still looming, don’t expect to see the tide shift overnight.
The second largest cryptocurrency by market cap has lost nearly a quarter of its value over the past week.
Ethereum reached a seven-day high of $3,879 on January 4 before shedding several hundred dollars in value the following day. By Monday morning, Ethereum had dipped to around $2,939 before recovering slightly to $3,044.13 where it sits as of this writing. The high on Wednesday to the low earlier today translates to a 24.23 percent drop in value.
Ethereum reached its all-time high in early November 2021 when it topped out at $4,865.57. In just three months, the crypto has lost a hair over 37 percent of its total value.
It’s a similar story for other cryptocurrencies as well, although the losses aren’t quite as extreme. Bitcoin is down about 12 percent on the week, from a high of around $47,359 to roughly $41,515. Bitcoin Cash has lost approximately 18 percent of its value over the past several days while Litecoin is down a little over 17 percent.
Of course, this sort of ebb and flow has become par for the course in the cryptocurrency space and has resulted in plenty of big winners and losers over the years.