Video card price drops to lowest level after Ethereum upgrade

Ten days after Ethereum stopped rewarding miners, the price of video cards is already at its lowest level in several countries. In addition to The Merge, the announcement of new AMD and NVIDIA lines also contributed to this decline.

While miners have immediately switched to other cryptocurrencies that use Proof-of-Work, such as Ethereum Classic (ETC), the yields are so low that about half of them have already switched off their equipment.

The effect of this is already being felt in both the used and new video card market. In any case, some patient gamers are still waiting for bigger deals.

NVIDIA and AMD Announce New Generations of Graphics Cards

Last Tuesday (20) excited for those looking for high-end video cards. While AMD announced its new series, the ATI Radeon 7000, its rival NVIDIA showed more details about the RTX 4080 and 4090.

According to manufacturer data, the new RTX series will perform twice as fast as the previous generation. As for the pricing, RTX 4080 12GB comes with a suggested retail price of R$8,199, RTX 4080 16GB at R$10,999 and RTX 4090 at R$14,999.

While the values ​​weren’t much to their liking, it did help to put pressure on their previous topline. This generation should reach the Brazilian market in 2022.

Miners migrate but find no shelter

Another point contributing to the price drop is the low profitability of mining. According to data from NiceHash, an RTX 3070 today earns only R$1.75 per day, a big difference from the R$8 before The Merge.

Since such a model costs about BRL 3,500, it would take the miner 5 years to recoup his investment. To make matters worse, this calculation excludes the energy price.

For those who have to pay for it, mining harms anyone who pays more than US$0.10 (R$0.53) per kWh. According to the website WhatToMine, the losses are as high as $0.14 (R$0.74) per day.

Therefore, every day more miner stops mining, as can be seen in the chart below, by putting their video cards up for sale. While such used GPUs may be in good condition, care should be taken as some miners even wash their equipment with jets of water.

Ethereum Classic (ETC) hash rate continues to drop. Source: 2miners.

Falling video card prices

Apparently, the price of video cards will continue to fall in the coming weeks. In addition to the arrival of the new AMD and NVIDIA series on the market, the above data shows that many miners are still going to shut down their machines.

Anyway, their price is already at the lowest level. According to data from Tom’s Hardware, some AMD cards like Radeon RX 6700 are down 15.5% in one week. The RTX 3060 TI presented a price reduction of 11.1%, the same percentage as the 3090. Also more basic models, such as the GTX 1650, appear on the list with a discount of more than 10%.

Video card prices have fallen over the past week. Source: Tom’s Hardware.

Here in Brazil the trend is the same. While an RTX 3070 cost BRL 5,000 in May this year, the model can now be found for BRL 3,500 in most popular stores. The RTX 3060, on the other hand, plummeted from R$3,900 to R$2,300.

Finally, some gamers are already taking advantage of the more attractive prices to finally play their games with good performance. Still, others believe they can get an even bigger discount if they have the patience to wait a few more days.

Source: Live Coins