The price of graphics cards continues to fall. The decline in the cryptocurrency market is prompting many miners to resell their GPUs.
Graphics card prices are falling in the used and retail markets. As reported by our colleagues at Tom’s Hardware, the fall in prices has accelerated in recent weeks. As a reminder, the price of GPUs started falling a few months ago after 5 years of continuous growth.
Between June 1st and June 15th, 2022, the retail price of certain AMD or Nvidia graphics cards increased contracted 5-7%. For example, the Nvidia GeForce RTX 3070 Ti cost around $700 on June 1st. It now costs $600.
The decline on the used market is even clearer. Prices have fallen on eBay from 2 to 21% within 15 days. Priced at $1,600 earlier this month, AMD’s Radeon RX 6950 XT is now trading at around $1,270 at auction.
The price drop of cryptocurrencies
GPU price drop is caused by the collapse of the cryptocurrency market. After the UST crash and inflation surged, the sector entered a new bearish phase. Bitcoin’s price stabilized around $20,000, a far cry from its record high of last year. Most crypto assets appear in the red zone. Such is the case of Ether (ETH), one of the most popular currencies for miners. Ethereum price fell back around $1100, a 40% drop in a matter of weeks.
The market decline has reduce miners’ profitability. Fearing a multi-year bear market, many miners are reselling their equipment at second-hand locations. Platforms like eBay suddenly seem to be swamped with bargains.
Also Read: Why Crypto Platform Celsius Blocks Its Customers From Withdrawing Their Funds
Crypto miners react like 2018
However, it is worth remembering that a graphics card was used to mine cryptocurrencies lower life expectancy. To mine crypto assets like Ether, GPUs run continuously and perform complex mathematical calculations. The use of a mining farm is far from a traditional use that contributes to prematurely degrading the graphics cards. Factors that contribute to early deterioration include overheating.
The situation is not unprecedented. In 2018, cryptocurrency miners had already resold in mass graphics cards when the market suddenly fell. Within a few months, AMD’s Radeon RX580 GPU had lost up to 67% in value.
AMD and Nvidia had even seen a sharp drop in card sales in the months following the crash. When Bitcoin fell back below $4,500, some Chinese mining farms even resold their machines by the kilo. History seems to be repeating itself.