Graphics Card Prices Collapse Due to Upcoming Ethereum Merger

A combination of factors has led to a significant drop in retail prices for video accelerators. One of the keyThe reasons are the upcoming transition of Ethereum to PoS with the refusal to work with miners. The cooling of the market will also contribute to the sale of stocks of NVIDIA and AMD before the release of the next generation.

Over the past six months, some video cards have come closeto the level of the manufacturer's suggested retail price, while others have already crossed this line. In general, popular devices show a decrease in average prices by 40-50% from the maximum level, and the price spread reaches 70%.

 

Image source: pcpartpicker.com

So, one of the top representatives from NVIDIAThe RTX 3080 Ti averaged $1,800 in March, with some retailers selling for $2,400. Now it costs about $1,000 for residents of the US and Europe.

Image source: gputracker.eu

Due to the high efficiency of the video card foundapplication in Ethereum mining. So, at the time of receipt in stores, the third generation from NVIDIA reached self-sufficiency in 4-6 months. Last November, the RTX 3090 was generating $7 a day, or over $2,500 a year after electricity bills. According to various estimates, at the peak of demand, miners bought up 30-50% of the volume of freshly issued cards, which contributed to the formation of a shortage.

Image Source: Cryptocurrency ExchangeStormGain

Complexity grew as the market saturatedcalculations, which reduced the profitability of mining. The problem was exacerbated by the subsequent fall of cryptocurrencies. As a result, in 2022, the yield from Ethereum mining almost halved to 2.4 cents per day per 1 MHash.

Cherry on the cake for mining on video cardswas the approval by the developers of mid-September as the final date for the transition of Ethereum to PoS, which, among other blockchains, provides the best profitability.

Image source: blog.ethereum.org

After the merger, miners will have two options:switch to a less profitable analogue or get rid of video cards (the option of creating an ETHPoW surrogate is not considered due to low viability). Judging by the secondary market, the most far-sighted crypto miners have already chosen the second option. Video cards warmed up by mining are sold at a discount of 50% or more in relation to new counterparts.

Most likely, the prices of both new and useddevices will fall again. In the secondary market, a surge in supply is expected immediately after the merger, and AMD and NVIDIA partners will be pleased with the drop in prices for new video cards. According to reports from Taiwan Economic Daily, manufacturers are unhappy with the pace of warehouse unloading ahead of the release of the next series, so more serious discounts for buyers are expected in September.

 

Analytical group StormGain

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