Why is it important: Ethereum is one of the few mainstream cryptocurrencies still usable for GPU mining, but this is expected to change later this year when it moves to a proof-of-stake model. At this point, we may finally see how miners are ditching high-performance GPUs, which could help stabilize the market for gamers. But with chip shortages and supply chain problems still looming, don’t expect things to change overnight.
The second largest cryptocurrency by market capitalization has lost almost a quarter of its value in the last week.
Ethereum hit a seven-day high of $ 3,879 on January 4 and lost several hundred dollars the next day. By Monday morning, Ethereum had dropped to around $ 2,939 and then recovered slightly to $ 3,044.13, where it is at the time of this writing. Wednesday’s high to today’s low means a 24.23% drop in value.
Ethereum reached its all-time high in early November 2021 when it topped $ 4,865.57. In just three months, the cryptocurrency has lost over 37 percent of its total value.
A similar story is with other cryptocurrencies, although the losses are not so extreme. Bitcoin fell about 12 percent over the week, from a high of $ 47,359 to about $ 41,515. Bitcoin Cash has lost roughly 18 percent of its value over the past few days, while Litecoin has lost just over 17 percent.
Of course, this kind of ebb and flow has become commonplace in the cryptocurrency space and has resulted in a large number of big winners and losers over the years.