Bad news for gamers – GPU prices are increasing once again, this time because of Ethereum
- If you are a gamer and have been waiting for GPU prices to stabilize or decline, you are in for a rude shock.
- The recent surge in Ethereum prices has led to a major increase in the prices of Nvidia GPUs.
- To make matters worse, reports suggest that this could get worse as supply is expected to reduce by half in the coming weeks.
A report by MyDrivers, a Chinese news portal that tracks tech-related supply chain news, has revealed that Nvidia GPU (graphics processing unit) prices are up by 18% in China. The report states that the supply of Nvidia graphics cards will be “very tight” in September, with total units expected to be down by 50%.
While GPU prices bottomed out around July, the new spike could be a result of a major breakout in Ethereum prices. In the last one week, Ethereum has surged by over 23%, going from $3,172 (approx. ₹2,31,700) to $3,912 (approx. ₹2,85,700).
AdvertisementEthereum was trading around $2,000 in July, leading to a decline in GPU prices across the board, as cryptocurrency mining became less profitable. At $2,000 levels, Ethereum’s price had fallen by half from its previous highs of over $4,000.
Unsurprisingly, with Ethereum back in the $4,000 range, GPU prices have picked up steam, too. And it’s not just Nvidia cards that have seen an increase in prices – the AMD RX 6000 series cards have witnessed a noticeable increase, too.
This is at a time when the supply is still keeping up with the demand – according to a 3D Center report, supply has taken a minor hit despite the surge in demand. If and when the supply gets even more constrained, we could see a much more rapid increase in GPU prices.
These are the worst affected graphics cards
According to data compiled by MyDrivers, some of the worst affected graphics cards are Nvidia-based ones from Asus and Gigabyte. Note that these are prices in China.
- RTX 3070 Ti: +600 Yuan (approx. $92 or ₹6,800)
- RTX 3080, 3070: +400 Yuan (approx. $62 or ₹4,500)
- RTX 3060 Ti, 3060: +350 Yuan (approx. $54 or ₹4,000)
- RTX 3090, 3080 Ti: +400 Yuan (approx. $62 or ₹4,500)
- RTX 3070 Ti, 3070, 3060 Ti, 3060: +300 Yuan (approx. $46 or ₹3,400)
|RTX 3080 Ti||₹1,50,900|
|RTX 3070 Ti||₹1,06,000|
|RTX 3060 Ti||₹81,300|
Source: Cost to Cost, Prime ABGB
A 3D Center report notes that GPU prices are increasing in Europe as well.
If the Ethereum rally continues and with supply issues expected to worsen in the coming weeks, you can expect GPU prices to increase even more from where they are now.
How are GPU prices linked to cryptocurrency prices?
Cryptocurrency mining requires a GPU or a dedicated application-specific integrated circuit (ASIC) to solve complex mathematical problems.
Cryptocurrency mining can be an expensive proposition given the hardware it requires, and the power that is consumed in the process. If cryptocurrency prices increase, crypto mining becomes more profitable, thereby resulting in an increase in demand for GPUs.
With Ethereum prices nearly doubling over the last one week, it’s no surprise that GPU prices are increasing once again.
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