Ethereum's Merge to Reduce Demand for GPUs, says Morgan Stanley

According to a Morgan Stanley analyst, demand for GPUs should reduce with Ethereum transitioning into a proof-of-stake network. The crypto drawdown has further reduced the profitability of Ethereum mining.

Timeline of Ethereum

Past trend of the Ethereum value captured per byte metric suggests that a 50% drawdown from here is still possible for ETH. Ethereum Value Captured Per Byte Currently Stands At $0.30, Double The Previous Bear Bottoms As per the latest data released by Glassnode, ETH may still possibly have potential for a further 50% plummet

Although there are many liquidations and layoffs in the cryptocurrency industry, Ethereum developers are working toward the Merge, the blockchain network's planned transition to a [...]

What happened: On Sunday a total of 2,763.31 Ether (CRYPTO: ETH) worth $3,291,097, based on the current value of Ethereum at time of publication ($1,191.00), was burned from Ethereum transactions. Burning is when a coin or token is sent to an unusable wallet to remove it from circulation.

Morgan Stanley expects the demand for graphics processing units (GPUs) to decline later this year. This could happen once the Ethereum blockchains planned switch to a proof-of-stake (PoS) model is completed.

Ethereum lending platform XCarnival confirmed a bad actor stole $3.8 million or 3,087 ETH. According to a report from on-chain security firm Peck Shield, a hacker exploited a vulnerability on the protocol's smart contract by borrowing ETH and creating “multiple pledge orders to pledge BAYC (Bored Ape Yacht Club NFTs) many times”.

Ethereum [ETH] has had a difficult journey in 2022. The altcoin saw a peak drawdown of -79.5% from its ATH, placing its most sell-off within the upper bound of previous bear market floors.

As Logarithmic Finance (LOG) has been introduced to the cryptocurrency market, it has become the new talking point alongside Ethereum (ETH). Logarithmic Finance (LOG) is the new layer-3 switching protocol that aims to link investors and developers smoothly and efficiently

Ethereum price analysis is bullish today as we have seen a break above the $1,250 previous major resistance after bears failed to take over the momentum. Therefore, we expect further tests of upside to follow later today, likely leading to a strong higher local high set early next week.

In light of the recent crypto market crash, Ethereum [ETH] can be considered one of the worst-hit tokens. Given the performance of the token in the past couple of days, it can be hard to imagine the token back above the $1,000 support line.

On Friday (June 24), Jon Ramvi, founder and CEO of blockchain startup Symfoni, which is sponsored by Etheruem Foundation, said that “the Norwegian Government just announced that they are releasing a solution on public Ethereum.” A Twitter thread posted by Ramvi on June 24 had this to say about this solution (“a cap tables platform