Crypto miners dump GPUs as token prices fall

Share This Post

According to PC Gamer, crypto miners are dumping their GPUs in increasing numbers as token prices falter during the downturn.

The knock-on effect has seen a steady decrease in the cost of graphics cards as the market gets flooded with availability.

In analyzing European prices, Tom’s Hardware reported a divergence in pricing between manufacturers. AMD offerings, on average, are currently 8% below retail, whereas Nvidia products are still 2% above retail on average.

Nonetheless, gamers, who have long and hard complained about being priced out of the market, will welcome the development.

Crypto mining is fractured

The evolution of crypto mining, namely the popularization of Application Specific Integrated Circuits (ASICs) mining, has fractured digital asset mining into two distinct camps.

The first is corporate mining companies with deep pockets and the freedom to relocate operations wherever conditions, such as the cost of electricity and regulatory support, are most favorable.

Some individuals approach crypto mining as a profitable hobby. Still, they tend to be frozen out of mining ASIC tokens, such as Bitcoin, due to the intense competition from the first camp.

At least in the past, Hobbyist miners could compete by mining non-ASIC tokens using GPUs — the most popular being Ethereum, while others include Monero, Ravencoin, and Ethereum Classic.

However, falling hash rates hint that hobbyists are leaving.

Hash rates show a sharp drop off

Analysis of the Ethereum hash rate shows a sharp decline to 925 TH/s, representing an 18% drop from the May 13 all-time high of 1,127 TH/s.

Ethereum hash rate
Source: ycharts.com

The drop suggests miners are leaving the network, but it’s unclear why. In the case of Ethereum, the transition to a Proof-of-Stake (PoS) consensus mechanism means plans are in place to make mining increasingly tricky and therefore unprofitable, in what is known as the difficulty bomb.

As the Merge between the Proof-of-Work (PoW) and PoS chains nears, this is a factor weighing on miners’ minds. At the same time, falling token prices and rising global energy costs are also in play.

Similarly, Monero’s hash rate also shows a sharp drop-off. On February 4, Monero’s hash rate peaked at 3.22 GH/s, but since then, it has declined by 29%, falling to 2.30 GH/s.

Unlike Ethereum, Monero has no plans to transition to a PoS network, suggesting the GPU mining exodus is industry-wide and driven primarily by profitability concerns.

Monero hash rate
Source: 2miners.com

Until the next bull cycle, gamers no longer have cause to blame GPU miners for lack of inventory and price gouging.

The post Crypto miners dump GPUs as token prices fall appeared first on CryptoSlate.

Read Entire Article
spot_img

Related Posts

BNB Smart Chain Shines In Q1: Triple-Digit Surges In Key Metrics

The Binance Smart Chain (BNB Chain), developed by the world’s largest cryptocurrency exchange by trading volume, Binance, experienced significant growth and performance in the first quarter

Bitcoin Bears Risk Losing $7.2 Billion If BTC Price Reaches This Level

The Bitcoin price continues to fluctuate wildly after crashing from its all-time high price above $73,000 This has triggered a wave of bearish sentiment in the market, causing a large number of

Terraform Labs to restrict US access, withdraw $23 million of liquidity following SEC ruling

Terraform Labs (TFL) announced changes to its operations on April 25 in light of a recent court ruling related to the SEC’s case against the company TFL said it expects to receive a conduct

Morgan Stanley to Broaden Availability of Spot Bitcoin ETFs: Report

Morgan Stanley, a leading global investment bank, is reportedly considering expanding access to bitcoin spot exchange-traded funds (ETFs) The firm may soon authorize its approximately 15,000 brokers

Cardano Crisis Or Comeback? ADA’s Key Metric Hits Low, What This Means For Investors

Data from analytics platform IntoTheBlock have illuminated a troubling trend within the Cardano (ADA) network, showing a significant dip in ‘profitability’ for its holders While

Bitcoin, Dogecoin Top Holder Profitability Ahead Of Cardano & Ethereum: Details

On-chain data shows that Bitcoin and Dogecoin have managed to top the charts regarding holder profitability Here’s what the ranking looks like Bitcoin & Dogecoin Are Among Coins With
- Advertisement -spot_img