It’s no secret that GPUs have been in high demand and short supply over the past year. The Covid-19 pandemic has only compounded the issue, as more people are working from home and using their computers for gaming and other graphics-intensive applications.
Additionally, the cryptocurrency market has been a major driver of GPU demand in recent years. However, the value of Bitcoin and other digital currencies has crashed over the past few months, leading to a decrease in demand for GPUs. As a result, prices for popular GPU models have skyrocketed, with some cards selling for hundreds of dollars above their MSRPs.
Fortunately, there are signs that the situation is starting to improve. Prices for GPUs have begun to trend downward, as the supply shortage has started to ease and inflationary pressures have begun to abate. However, certain cards — especially in the Nvidia and AMD ranges — remain significantly above their MSRPs, so it may still be some time before prices return to normal.
The recent unprecedented cryptocurrency crash has made the price fall at an aggressive rate.
According to Tom’s Hardware, GPU prices have decreased by 15% since May. Even before Bitcoin and Ethereum prices plummeted, prices for boards were starting to approach MSRP. The market is currently flooded with GPUs as a result of the cryptocurrency mining craze, which has placed downward pressure on prices.
However, this may not be the only reason for the decrease in prices. Board makers may also be cutting prices in anticipation of the release of next-generation GPUs from Nvidia and AMD.
Over the previous week, Bitcoin’s value has plummeted by 30%, but Ethereum has fallen by over 40% — a world away from its peaks of $60,000+ and $4,000+.
On eBay, an Nvidia RTX 3080 graphics card is available for less than $650, according to Tom’s Hardware. This same card was previously priced at more than $1,000 just a few months ago. Elsewhere on the site, certain listings were observed selling six RTX 3080 cards for $2,500.
RTX 3080 crypto mining profitability, meanwhile, has fallen off a cliff in recent days due to the continuing decline of ETH prices. After accounting for power costs, a miner would be able to generate around $0.85 on a daily basis.
With the recent decline in ETH prices, the profitability of RTX 3080 crypto mining has taken a hit as well. A miner can earn around $0.85 per day after power expenses are taken into account. This means that it would take about 1.5 years for the GPU to pay for itself, assuming the value of ETH does not change.
This decrease in profitability is because ETH prices have fallen from around $1,400 to below $1,000 in just a matter of weeks. As a result, many miners are forced to either sell their ETH at a loss or hold onto it in hopes that prices will rebound. Either way, the current situation is not ideal for those looking to profit from crypto mining.
This is good news for gamers and other consumers who have been waiting for prices to return to normal levels. It is also a sign that the cryptocurrency craze may be waning, which could have a positive impact on the overall economy.