GPU prices drop by 57% since January as Ethereum mining profits decline

Published by
Nonhlanhla P Dube

According to data, GPU prices have recently continued to fall as Ethereum mining profits have decreased.

GPU prices fall as demand from Ethereum miners declines

According to data from the tech website Tom’s Hardware, graphics card costs continued to fall in June, falling another 14%.

Due to a variety of causes such as the pandemic and a chip supply shortfall, the new generation of graphics cards debuted in 2020 with relatively limited stock, causing prices to skyrocket.

Then, when the crypto bull run continued in 2021, Ethereum mining became highly profitable. Miners overwhelmingly added to the already strong demand in the GPU field, and the perfect storm to disrupt the market was complete, with both Nvidia and AMD cards seeing double or even treble the price.

This trend continued into 2021, and card availability was not looking promising at the start of this year. However, since the crypto market has had a series of falls in recent months and the scarcity has eased slightly, the situation has marked a considerable improvement. GPU prices have fallen by an average of 57 % since January 2022. They dropped by roughly 14% in June alone.

Prices for used GPUs on websites such as eBay have fallen considerably more precipitously than those on retailers’ websites. This makes logical given that the Ethereum hash rate has lately dropped, implying that some miners who are no longer profitable are disconnecting their GPUs and presumably selling them on reselling websites.

Why have Ethereum mining profits declined in recent months?

A number of major variables have contributed to ETH mining losing its high earnings beginning in 2021. The first and most visible is the cryptocurrency’s falling price. Miners rely on the USD worth of their mining rewards since they pay their electricity bills and other operating expenses in fiat. This year alone, Ethereum has dropped 72 % of its value, implying that miners’ profits would have suffered significantly.


Another reason would be the ever-increasing global electricity rates. Electricity bills typically account for a significant portion of miners’ daily expenses, and an increase in power rates would result in lower net profits for them.

The impending switch to the proof-of-stake consensus architecture would confuse network miners. This means that Ethereum mining has a deadline by which miners must earn a profit in order to avoid losing money.

Miners in high-cost power zones may be forced to sell off their GPUs in order to recoup some of their investment, as they may not be able to profit before PoS arrives.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: EthereumGPU
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