GPU Price drop result in loss of interest in cryptocurrency

GPUs from Nvidia and AMD are getting cheaper all around the world. Some reports say prices have dropped more than 11%, with the typical model seeing a 5% reduction in price. For the first time in many years, GPU costs have dropped. According to a recent report, interest in cryptocurrency mining may have peaked following the recent crypto market collapse.

It is possible to mine cryptocurrencies like Ethereum using GPUs (graphics cards). Because of the rising demand for GPUs, manufacturers like Nvidia have been forced to ban specific models for their gaming communities due to increased supply pressure from the mining community. The pandemic’s disruption of the supply chain for several components did not help matters.

GPU cost rising

For a long time, GPU costs have been rising. That is no longer the case following the current crypto-currency crisis. Nvidia and AMD GPU prices on eBay in the US were mapped by Tom’s Hardware during the previous week. Data from a week in December shows that costs have dropped by around 13% since then, according to the website. Generally speaking, the price of most graphics cards has fallen by roughly 5%.

It’s worth noting that Nvidia’s much-loved RTX 3090 and 3080 both experienced a 10% cut in pricing. The Radeon RX 6600 from AMD fell by 11.6% over this time period as well. It’s worth noting that the drop in GPU pricing isn’t the only one. There has also been a steady decline in the sales volume of nearly all GPUs.

Germany, according to 3DCenter.org, is experiencing the same price decline as the United States. Unlike the last study, this one focuses on local merchants rather than eBay’s second-hand GPU costs. The price decline is, in fact, a worldwide phenomenon.

Also Read: Types of Crypto Mining You Should Know

Mining cryptocurrencies no longer excite you?

According to the study, there are two main causes for the decrease in GPU prices. For starters, the Ajinomoto Build-up Film (ABF) substrate, a layer that joins CPU components by providing electrical insulation, will be produced in greater quantities due to a recent scarcity. Cryptocurrency’s lengthy and steady decline is the second and more recognised, example.

In the week leading up to the latest crypto-crash, the price decline was seen. As a result, it is more relevant to the recent decrease in the value of cryptocurrencies. With the current drop in price, Bitcoin has now lost about half of its high value from November of last year, according to CoinDesk. Since then, the cryptocurrency market has lost more than $1 trillion in value.

In addition to the market, the mining community has been less than pleased. After China, Russia has proposed a ban on cryptocurrency mining in the nation. Once again, this ruling will make the practice unlawful in a country with one of the largest mining populations on earth.

A large number of computers and GPUs are commonly used in cryptocurrency mining rigs. Typically, these GPUs are put up for sale by miners after they shut down their operations. In the coming week, it will be fascinating to watch if this actually occurs. No matter what happens, the indications just lead to a fall in interest and the subsequent decrease in GPU pricing.