Cryptocurrencies are not going through their best period, to the extent that the mining of ethereumone of the most popular, has ceased to be profitable for many miners due to the constant increases in the price of electricity.
The bad moment that Ethereum mining is going through can be verified by looking at electricity prices in the United States, while the cryptocurrency has seen fall in value to about $1,250 right now. The average price of electricity in regions such as New England, Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island exceeded $0.22 per kilowatt hour, which is starting to leave many miners in a difficult situation.
Using a single overclocked NVIDIA RTX 3090 graphics card, generating a performance of 130mh/s (millions of hashes per second) would cost miners between $1.85 and $2.13 per day in electricity. The Ethereum reward with said GPU is only $2.03 right now, so if the miner pays more than 0.245 dollars per kilowatt hour he will find that mining the cryptocurrency is not profitable for him as electricity is more expensive than what can be obtained with the mining process.
At the point where mining is not profitable, it would be better to use that same money to buy Ethereum directly. The cryptocurrency created by Vitalik Buterin is not the only one going through such a trance, as the profitability of GPU mining has been falling steadily since the middle of last year. Moreover, Ethereum is still the most profitable cryptocurrency to mine through the chart and its situation is starting to not be good, so one can already imagine how its competitors are doing.
For Ethereum to return to the path of profitability in the United States, one of two things has to happen: the value of the cryptocurrency rises above $1,400 or the price of electricity falls below 0, $24 per kilowatt hour. In Europe, the thing is not that it is better, since the price of electricity is above 0.25 dollars per kilowatt hour in countries such as the United Kingdom, Germany, Belgium, Spain and Denmark, resulting in mining through the graph is not profitable in any of them.
The current international context is making it very difficult for cryptocurrencies, whose value does not stop falling. This, together with very high electricity prices, has put the profitability of many of them in check. Looking at the levels of volatility in that market, a rebound cannot be ruled out, but as long as the context of the war in Ukraine continues, a comeback does not seem likely.