Graphics processing units (GPUs) are facing a huge number of losses due to the new launch of the Ethereum merge. The idea of Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) has become a misery for the ETH miners. Maybe the transition helped with less consumption of electricity, but GPUs are showing a decline in their growth rate.
GPUs are the processing units that are utilized in gaming technology and the mining of digital currency. Before the merge, GPUs were at a success rate that benefited a lot of ETH miners. The graphics cards were in huge demand by the miners. Like Nvidia’s GeForce RTX3080, RTX 30380 Ti, and RTX 3090 which had a high growth rate in Shanghai before the merge.
The unique features of GPUs make the graphics cards more suitable for hashing, which is basically used for mining in the Proof-of-Work (PoW) blockchain technology. After the merge, the transition needed a lower number of miners, and the low utilization of computers affected a lot of miners who are involved in GPUs.
According to the reports, Chinese distributors have seen a more than 33% drop in suggested retail prices in recent months for the following reasons:
- The continuous fall of cryptocurrency prices.
- Due to high demand from miners, distributors consistently raised GPU market prices.
- China banned mining activities.
- And the Ethereum transition created a lot of losses for the GPU markets.
The RTX 3080 has been facing losses for the past three months of nearly $8,000 yuan to $ 5,000 yuan, as per the reports. Most of these GPU chips are from some of the most popular companies, like Asus and Micro-Star International.
“When the wave of bitcoin mining was at its peak, people from the mining companies just walked into the stores with cash and took away all the graphics cards we had in store. No one is buying new computers because of the coronavirus, not to mention those who want to install a new graphics card.”
According to the statement of Peng, in an interview, he said that at the start of Bitcoin mining, the demand for GPUs was at a peak level. The graphics cards were sold like hotdogs before the transition. But now GPUs are showing a 10% decline every week.
Source: https://www.thecoinrepublic.com/2022/09/26/the-transition-of-ethereum-is-continuously-hitting-gpu-platforms/