GPU price inflation is easing slightly as Ether’s downtrend continues

Graphics processors (GPUs) got a bit cheaper in July amid the ongoing downward trend in Ether (ETH) prices.

According to a TechSpot test, GPU prices for popular graphics cards were slightly lower in July than in June.

The lower prices in July are a continuation of the steady decline in GPU prices since the beginning of the current downturn in the crypto market.

With ETH rising from over $ 4,000 in May to less than $ 2,000, mining profitability has also plummeted. According to data from BitInfoCharts, profits from ether mining are down about 80% from their peak in May 2021.

Since the difficulty of ether mining also drops by almost 8%, it looks like interest in GPU mining is also on the lower side. All in all, these factors could reduce the demand for already scarce graphics card hardware to the benefit of non-crypto-mining GPU users like gamers.

The rise in demand from altcoin miners has increased the price of GPU miners as manufacturers are forced to include hardware blocks in their graphics cards to limit performance to deter mining companies.

GPU makers like Nvidia have also launched crypto-mining-only graphics cards to ease the price burden on the rest of the PC hardware ecosystem.

TechSpot figures show that average GPU price inflation was down 16% from the manufacturer’s suggested retail price (MSRP) in June. As of the third week of July, some GPUs have dropped by $ 200 to $ 500.

However, despite the decline, GPU prices are still much higher than their respective MSRPs, resulting in average price inflation of 92%, according to TechSpot data. In fact, the GeForce RTX 3060 Ti is listed at $ 1,012, which is about 153% of the MSRP price of $ 400.

Connected: Nvidia GPU prices in China are falling amid the crackdown on crypto mining

With GPUs still selling at almost double the MSRP, gamers and other non-mining members of the PC hardware ecosystem can still find their prices out of reach, especially for brand new GPUs.

In fact, the same situation exists in the used GPU market, where the current drop in prices is insufficient to cause a significant drop in price inflation.

However, as previously reported by Cointelegraph, the drop in Nvidia GPU prices on Chinese ecommerce sites could be attributed to the crackdown on crypto mining operations in the country.