Ethereum upgrade affects GPU sales
The merger changed the consensus approach of the Ethereum protocol, shifting the mechanism from mining to mining, which is less energy-intensive and therefore more environmentally friendly.
Upgrading the integration, as we have indicated, has benefits, but it is not without harms.
The manufacturers of GPU graphics cards, which were making a lot of profits thanks to the demand for them from the Ethereum miners, were hurt.
The South China Morning Post, an Asia-focused media outlet, reported that the Ethereum crash caused GPU prices in China to plummet, sending sales to an all-time low.
Due to low demand from miners who used to buy expensive cards like Nvidia's GeForce RTX 3080, RTX 3080 Ti, or RTX 3090, vendors were forced to unexpectedly slash GPU prices by three times the value suggested by graphics card manufacturers.
Ethereum upgrade affects GPU sales:
Due to lower demand from miners, high-end GPUs like the RTX 3080 have fallen over the past three months by more than 37%, from 8,000 yuan ($1,140) to less than 5,000 yuan ($712), according to Wubeng, a Shanghai dealer.
According to Wing, this whole situation could continue due to the many negative scenarios surrounding the crypto market, such as the collapse of the bitcoin price, the ban on mining in China, and even the new shutdowns due to COVID, which have exacerbated the situation.
Cryptocurrency mining (especially Ethereum mining) has fueled the price of GPUs over the past few years, after which prices have gradually fallen as Ethereum integration approaches.
According to a previously mentioned source, graphics card dealers in Buy Now, one of the largest local electronics market in Shanghai, are standing idly by as they watch graphics card prices plummet after the Ethereum upgrade went through.
Some researchers estimated that GPU prices were dropping an average of 10% each week before the Ethereum integration upgrade.
While this crash may lead to the closure of many e-stores, for others, it is the end of a two-year nightmare as retailers raise GPU prices as much as possible due to the high demand for it from Ethereum miners.
