News

GPU Prices In China Drop To Historic Lows After The Merge

The Merge changed Ethereum’s protocol consensus from PoW to more environmentally friendly PoS. However, it did cause some damage to some people. Specifically, it is hurting GPU companies that are making a lot of money on demand from ETH miners.
GPU Prices In China Drop To Historic Lows After The Merge 5

The South China Morning Post (SCMP) reported that Ethereum’s conversion caused a drop in GPU prices in China, sending sales to an all-time low.

Due to low demand from miners who used to buy expensive cards like GeForce RTX 3080, RTX 3080 Ti, or Nvidia’s RTX 3090, suppliers had to suddenly cut the price of GPUs by three times the value proposed by GPU factories.

Due to low demand from miners, high-end GPUs like the RTX 3080 have dropped more than 37% in the past three months, from 8,000 yuan ($1,140) to less than 5,000 yuan ($712), Peng, a trader in the Shanghai market, told SCMP.

GPU Prices In China Drop To Historic Lows After The Merge 6

According to Peng, this whole situation could continue due to a number of negative scenarios surrounding the crypto market, such as the crash of Bitcoin, China’s mining ban, and even new COVID-19 lockdowns, which have only made the situation worse.

“When the wave of Bitcoin mining was at its peak, people from the mining companies just walked in the stores with cash and took away all the graphics cards we had in store. But now look at the stores. No one is buying new computers because of the coronavirus, not to mention those who want to install a new graphics card.”

Another trader named Liu said that Ethereum Merge was the cause of the collapse in the price of GPUs, as, two months before The Merge happened, even the cheapest low-end GPUs started to drop more than 50% causing miners to sell their hardware at a substantial loss.

GPU Prices In China Drop To Historic Lows After The Merge 7

Cryptocurrency mining (especially ETH mining) has driven the price of GPUs over the past few years; however, the price gradually dropped sharply as Ethereum Merge approached.

According to SCMP, graphics card traders at Buy Now, one of Shanghai’s largest local electronics markets, are having a headache as they witness the euphoria of miners after the Ethereum Merge takes place.

In just a few weeks, Chinese retailers have reduced the suggested retail price of GPUs by more than 33% due to two reasons: The correction of the GPU market and the crypto crisis.

Price change of some GPUs after The Merge. Source: Baidu

Contrary to miners, currently, gamers, designers, AI programmers, and even astronomers can have small smiles on their faces.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

16 mins ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

16 mins ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

1 hour ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

5 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

8 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

10 hours ago

This website uses cookies.