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Ethereum Losses

Definition

Ethereum losses signify a reduction in the market value of Ethereum holdings. This decrease occurs when the price of Ether, the native cryptocurrency of the Ethereum network, declines below an investor’s purchase price or when tokens become permanently inaccessible. Such losses can be unrealized, reflecting a temporary price drop without a sale, or realized, occurring when Ether is sold for less than its acquisition cost. These events impact the financial standing of investors and the overall sentiment within the decentralized finance (DeFi) ecosystem.