Graphics Card Prices Tank in China Weeks After Ethereum Merge

Ethereum’s long-awaited transition to proof-of-stake has further impacted graphics card markets since they can no longer be used to mine the asset.

Prices for graphics processing units (GPUs) have fallen to their ‘lowest level ever’ in China following the Ethereum Merge earlier this month. Graphics card vendors in China have reported reeling prices for mid and high-end units over the past two months according to the SCMP.

When ETH could be mined, and the bull market was in full swing, demand for Nvidia’s flagship GeForce RTX 3080 and 3090 models saw recommended retail prices tripling. However, according to merchants in Shanghai’s electronics retail market, demand and prices have slumped almost 40% over the past three months.

Chinese GPU glut

According to one merchant, during the mining peak people from the mining companies walked into the stores with cash and took away all the graphics cards. “But now look at the stores. No one is buying new computers because of the coronavirus, not to mention those who want to install a new graphics card,” he added.

Another merchant said that prices for some models had now dropped below their recommended retail price. Chinese e-commerce platforms have also seen merchants drop prices on high-end graphics cards in a bid to sell them on.

There is also a thriving second-hand market for graphics cards but gamers remain reluctant to buy a card that has been used for crypto mining as they run close to full capacity 24 hours a day which stresses the components. “I don’t think any PC users will want them, but it is difficult to tell from the outside whether it was a mining card,” said the merchant.

The counter argument is that cards used for mining run in a steady state with constant voltages and ample cooling which is better for the hardware than temperature and power fluctuations from gaming.

Gamers rejoice

Now that the crypto mining hype is over (for now anyway), PC gamers have a reason to celebrate as graphics cards are now more affordable. However, supply chain disruptions have resulted in prices remaining elevated in the west where graphics cards are still in high demand.

Another factor that could drop prices even further is the product line evolution and new models hitting the market. Last week, Nvidia announced its RTX 4000 series graphics card line which will hit the stores on Oct. 12. These units will not be cheap, however, with the TX 4090 model carrying a hefty retail price of $1,600.