After the mad cryptocurrency boom in late 2020 and early 2021, graphics card prices hit record highs between cryptominer demand, component shortages, and limited production due to the use of thinner etching nodes.
The situation eventually improved and the spring of 2022 saw the graphics card prices return to the level of the reference tariffs. But they don’t stop there and are slipping below MSRPs, a sign of weakening demand.
The website Tom’s Hardware links part of this reversal to the collapse of the cryptocurrency market which experienced a two-step cryptocrash that dried up the main virtual currencies, Bitcoin and Ether in the lead.
End of euphoria in cryptos, waiting for new generations
With the market down from $3 trillion in valuation to less than $1 trillion in the space of a few months, cryptominers are suffering as exchanges are battered and reeling from a crypto winter.
Small and medium scale cryptomining is no longer profitable as inflation drives up energy prices and criticism mounts against these energy sinkholes. Industry pressure on gaming graphics cards is fading, which has already started to be felt in the first quarter with declining sales.
To find their way around, cryptominers sell off their graphics cards that end up on the market, creating a glut of supply at knockdown prices. Even on the resale market like eBay, prices have fallen 10% in two weeks and the trend may continue for some time to come.
Indeed, the new generations of GPUs (RTX 40 from Nvidia, Radeon RX 7000 from AMD and ARC A from Intel) will arrive in the coming months and demand, awaiting novelty, may be affected in the meantime. . The intensity of the price falls will then depend on the inventories remaining with manufacturers as they have made efforts to increase their production in recent quarters.
The most requested graphics cards are still resisting a little the general fall in prices but this cannot last, says again Tom’s Hardware.