GPU Prices Drop By 30% In Two Months; Is Ethereum’s Move To PoS Behind This?

Ethereum (ETH) is ready to shift to a proof-of-stake (PoS) mannequin later this yr, which is able to see the token forsake conventional mining for staking. However this transfer has the added impression of lowering the costs of graphics playing cards (GPU), that are a preferred instrument for mining the world’s second-largest cryptocurrency.

A surge in crypto’s recognition by means of 2020 had precipitated a corresponding hike in GPU costs. Coupled with a worldwide chip scarcity, GPU costs had reached astronomical ranges by 2021.

ETH can be one of the vital mined currencies utilizing GPUs. Whereas Bitcoin (BTC) mining was additionally initially  achieved by means of GPUs, the token’s excessive hash price has seen miners switching to extra specialised expertise, equivalent to custom-built chips.

Is ETH transfer to PoS driving GPU worth down

Recent reports confirmed that the price of high-end GPUs from Nvidia, a staple in crypto mining, had dropped almost 30% prior to now two months. GPU costs in China had been already plummeting after the nation’s crypto ban, however this pattern additionally appeared to have unfold to international markets.

Nvidia GPUs in Australia and Germany had been seen almost halving in worth, whereas these made by Superior Micro Gadgets (AMD) noticed a median decline of 13%.

The GPU market additionally seemed to be flooded with second-hand playing cards from former miners, particularly from nations equivalent to China and Kazakhstan, which have outlawed the observe.

ETH more likely to ditch mining this yr

The Ethereum blockchain is ready to change to a PoS mannequin later this yr, a transfer that can minimize ETH’s computational necessities by almost 100%. The blockchain earlier this month examined out an early implementation of the PoS mannequin.

The transfer boosted ETH’s worth to again above $3000, and is basically anticipated to be bullish for the token, by making it extra accessible to non-miners and almost negating its environmental impression.

Nonetheless, a rally in Ethereum Traditional (ETC), an older, mining-centric model of Ethereum, has fuelled hypothesis that current ETH miners may pivot into the opposite token. As such, ETH mining could not die down utterly.