China Reports GPU Price Fall To All-Time Low Post Ethereum Merge
2022年9月26日 - 11:35PM
NEWSBTC
The successful Ethereum upgrade to proof-of-stake consensus is
receiving more backlashes from the market. Therefore, the Ethereum
upgrade should produce only positive feedback, but where there are
merits, demerits must exist. One of the aftermath challenges the
industry faced since the Ethereum upgrade was the drop in GPU
prices. Graphic Processing Units (GPUs) in crypto mining increased
over the years because they proved very efficient. Related Reading:
TA: Ethereum Price Needs To Clear $1,400 For Hopes of a Fresh Rally
GPU companies were earning huge profits due to the increased demand
from ETH miners. However, it is no longer so, as the price of GPUs
has dropped drastically over the past three months. Furthermore,
the prices of GPUs dropped further after the upgrade. Is Ethereum
Merge Major Cause Of GPU price Crash? South China Morning Post
(SCMP) reported that GPU prices in China dropped to the lowest due
to the Ethereum merge. ETH mining has reduced. So miners’ demand
for GPU went low. Miners’ demands for expensive cards such as
GeForce RTX 3080 and RTX 3090 became low and caused a reduction in
price to trice the factory prices. Also, due to the China mining
ban and COVID lockdown, the demand for costly GPUs fell and
worsened during the bear market. A Shanghai trader, Peng, told SCMP
that RTX 3080 dropped by over 37% in the last three months.
According to Peng, the price of RTX 3080 went from 8000 yuan
($1,140) to less than 5000 yuan (%712). Peng attributed the drop in
the price of GPUs to the poor condition of the crypto market.
Ethereum mining was one of the highest contributors to the high
demand for GPUs in the past years. Traders noticed a slump in GPU
prices as the Ethereum merge drew near. SCMP reported that
retailers at ‘Buy Now,’ a large electronics market in Shanghai, are
experiencing low GPU demand. Retailers Lower GPU Prices Chinese
retailers reduced factory-suggested GPU prices by over 33% in a few
weeks to sell their equipment. The reason for this is the crypto
bear market and GPU correction market. According to data from
Baidu, traders are losing the selling price compared to the factory
cost of GPUs. Analysts estimated that the average price drop of
GPUs per week is about 10%. Some reports show that NVIDIA, a large
GPU manufacturer, is reducing the price of their GPU for board
partners. This report is still unconfirmed, but it would likely
cause further reduction in the coming weeks. Although the crash in
GPU prices may adversely affect many businesses, others think it
marks the end of two years of nightmare. Many GPU retailers would
previously raise the prices as high as possible because of the high
demand by miners. Related Reading: Litecoin Price Watch: Why Only
15% of LTC Holders Are Making Profit The crash in GPU prices could
prove beneficial to AI coders, gamers, and other users because
Crypto miners caused an unnecessary increase in GPU prices.
Featured Image From Pixabay, Charts From Tradingview
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