Since the price of Ether has dropped below $2,000, the price of Graphics processing units (GPUs) has fallen even further from June to July this year.
GPUs have gotten a little more affordable in July, as the price of Ether has maintained its downward trajectory (ETH).
As reported by TechSpot, GPUs costs across a wide range of popular graphics cards are marginally lower in July than they were in June, based on their analysis.
This month’s lower GPU prices represent a continuation of the continuous fall in GPU prices that has been occurring since the beginning of the current crypto market downturn.
Because the price of ETH has plummeted from above $4,000 in May to below $2,000 now, mining profitability has also suffered a considerable decline. According to data from BitInfoCharts, the profitability of ethereum mining has dropped by around 80% since its peak in May 2021.
Due to the fact that the difficulty of Ether mining has decreased by over 8%, it looks that GPU mining interest is also at a slower but more significant ebb.
Overall, these reasons could result in a decline in demand for already limited graphic card hardware, which would be beneficial to non-crypto mining GPU users such as gamers who do not mine bitcoins.
Increasing demand from cryptocurrency miner drove up the price of graphics card miners, prompting manufacturers to put hardware blocks in their graphics cards that limited performance as a means of preventing miners from using them.
GPU manufacturers such as Nvidia have also introduced graphics cards that are solely dedicated to crypto mining in an effort to reduce the pricing burden on the rest of the PC hardware ecosystem.
TechSpot figures show a 16% average decrease in GPU price inflation from the manufacturer’s suggested retail price (MSRP) in June. As of the third week of July, the prices of numerous graphics processing units (GPUs) have already dropped by $200 to $500.
In spite of the drop, however, GPU prices are still much higher than their individual MSRPs, resulting in an average price inflation of 92 percent, according to TechSpot estimates. Indeed, the GeForce RTX 3060 Ti’s quoted price of $1,012 is around 153 percent higher than the card’s MSRP of $400.
In light of the fact that GPUs are still selling for nearly twice the MSRP, gamers and other non-crypto mining members of the PC hardware ecosystem may still find their costs too expensive, particularly for brand-new GPUs.
It is also true that the similar issue occurs in the used GPU market, with the current price cuts not being sufficient to induce a major decrease in price inflation.
Nvidia GPU prices, on the other hand, are declining across Chinese e-commerce platforms, as previously reported by Cointelegraph, most likely as a result of the government’s crackdown on cryptocurrency mining activities in the nation.