Ethereum Drop Makes GDDR SGRAM Cheaper: Will Graphics Cards Drop too?

Fibo Quantum

Ethereum mining has not been as profitable for the past couple of months, though volatility could still change things. The drop in ETH prices not only affected miners’ profitability, but also spot prices of graphics memory, such as GDDR5 and GDDR6. Cheaper SGRAM on the spot market could potentially affect contract prices of graphics memory, though we don’t expect retail prices of graphics cards (especially the best graphics cards that are used for demanding games) to decrease in the coming months because of GDDR spot price drop. 

ETH prices fell by more than 50% within a two-month period as regulators in countries like China and Turkey implemented measures to circumvent speculation on cryptocurrencies and illegal/semi-legal mining. In Q1 2021, about 700,000 graphics cards were sold to miners, according to estimates from Jon Peddie Research, and many of these graphics cards were made using GDDR6 memory sold on the spot market. With demand for boards from miners on the decline, that leads to lower spot prices on memory, but there’s a catch: The vast majority of graphics cards use memory that is supplied under contracts with appropriate pricing. 

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