GPU Miners Hit Secondhand Market as Ether Price Gains Taper Off

The economics of the ethereum blockchain are having an impact on other markets, according to news reports.

AccessTimeIconJul 17, 2017 at 5:00 p.m. UTC
Updated Sep 11, 2021 at 1:32 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

As the price of ether has declined over the past month, e-commerce websites like eBay have seen an increase in users seeking to sell graphics processing units (GPU) used in ethereum mining.

The native cryptocurrency on the ethereum blockchain, ether had recorded strong gains in 2017, rising from just under $10 on January 1, to a high of more than $400 on June 12. However, as excitement for the emerging technology cools, and the economics of the network evolve, prices have dropped, declining to a low of $133 over the last weekend.

While the price has dipped alongside cryptocurrencies, an unexpected side effect unique to ether is that the market now seems flooded with used GPUs for ethereum mining.

The search term "ethereum mining rig," for example, shows 260 entries on eBay – all of which went online after June 11 this year except three. Half were published during last week when ether price dropped below $200.

A similar case is also seen on the classified ad website Craigslist, where all 126 posts of ethereum mining GPU sales can only be found after July 11.

As a result, the development could have an impact, including stemming a rejuvenated interest from GPU manufacturers like NVIDIA and AMD, both of which saw sales and stock prices increase amidst the rally.

Still, that's not to say that manufacturers are deterred.

The Taiwan-based manufacturer Asus plans to launch two new GPUs later last month specifically for the cryptocurrency mining market, and sales results could do much to demonstrate market interest.

GPU chip image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.