06 Sep 2021 10:57 AM +00:00

NVIDIA GPU Prices Are Back On The Rise - But Is Ethereum To Blame?

The prices of NVIDIA’s flagship RTX 30 Series GPUs appear to have risen by nearly 20% in the Chinese market, spurring questions of Ethereum’s involvement as the cryptocurrency nears the $4000 mark.

Ethereum, ahead of the Ethereum 2.0 upgrade, still uses proof-of-work, relying on mining to secure add new blocks. This requires a hefty amount of power that only high-end GPUs can offer.

However, are these claims unfounded, or has Ethereum once again created a higher demand for GPUs? Let’s take a look.

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Is Ethereum Responsible For The Latest GPU Price Hike?

According to data collated by MyDrivers (via VideoCardz), various NVIDIA GPUs have seen price increases by almost $100. The price of an RTX 3070 Ti is up 600 yuan – or $93 - since August, it claims.

So, how does this relate to Ethereum trends?

Looking at Ethereum’s price increase from August (up 35%) gives somewhat of an indication, but it's best to first assess the hash rate.

Ethereum’s hash rate (via Etherscan) consistently increased during August. The daily hash rate started the month at 560 GH/s, ending it at 663 GH/s – an increase of over 15%.

Based on the hash rate increase, there appears to be a correlation between Ethereum mining and GPU price increase.

Of course, that’s not the whole story.

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MyDrivers reported that the supply of RTX 30 GPUs will drop by over 30% compared to its August yield. Component shortages continue to disrupt the whole technology sector, driving up prices through rising costs of manufacturing and opportunist scalpers.

Indeed, the report focuses on China – which publicly clamped down on crypto mining activities in August. This led to a significant global hash rate decline for both bitcoin and Ethereum as Chinese miners flooded second-hand marketplaces with used GPUs. The Chinese government continues to maintain this policy, with miners opting to relocate to continue their operations outside of China.

Looking outside of China, Tom’s Hardware reported that eBay GPU prices rose by an average of 5% between August 9-23.

We can’t conclusively shift the blame to Ethereum for the GPU price, nor can we say it has no impact, especially as GPUs already sell for well over their RRP. But one thing is for sure: gamers and crypto holders are united in awaiting Ethereum’s shift to staking.

Read More: Ethereum Vs Ethereum 2.0: Will Ethereum 2.0 Replace Ethereum?

[Featured Photo by Executium via Unsplash]