More market criticisms are being directed at the Ethereum upgrade to prove-of-stake. Although the Ethereum upgrade will produce positive feedback, there must still be merits.
A drop in GPU price was one of many challenges facing the industry since Ethereum upgraded. Because they are very efficient, the use of Graphic Processing Units (GPUs in crypto mining has increased over time.
Due to increased demand for ETH miners, GPU companies made huge profits. It is not true anymore, since the GPU prices have dropped dramatically in the last three months. The price of GPUs fell further following the upgrade.
What is the main reason for GPU prices falling?
South China Morning Post (SCMP), reported that GPU prices fell to their lowest levels in China because of the Ethereum merge. ETH mining has decreased. 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.
The China mining ban, COVID lockdown and the China mining ban caused a drop in demand for GPUs. This was further exacerbated by the bear markets. Peng from Shanghai said that RTX3080 had dropped more than 37% over the past three months.
Peng said that the price of RTX3080 fell from 8000 yuan ($1,140), to under 5000 yuan(%712). Peng said that the decline in price for GPUs was due to the state of crypto markets.
In the last years, Ethereum mining has been one of the largest contributors to high GPU demand. The Ethereum merge was near, and traders saw a drop in GPU prices.
SCMP reported that retailers at ‘Buy Now,’ a large electronics market in Shanghai, are experiencing low GPU demand.
Retailers Reduce GPU Prices
Chinese retail outlets reduced GPU prices at factory suggested levels by 33% just a few weeks ago in an effort to sell the equipment. It is because of the GPU correction market and the crypto bear.
Data from Baidu shows that traders are experiencing a decrease in the selling price of GPUs compared with the cost at factory. An analyst estimated that GPU prices dropped by about 10% per week.
Some reports indicate that NVIDIA (a major GPU manufacturer) is decreasing the price of their GPUs for board partners. Although this report has not been confirmed, it is likely to cause another reduction over the next few weeks.
While the price drop in GPUs may have an adverse effect on many companies, some believe it is the end to two years of misery. Due to the demand from miners, many GPU retailers had previously raised prices as much as they could.
Because Crypto miners caused an unneeded increase in GPU prices, the crash could be a boon for AI coders and gamers.
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