"Prices Soar Over 3x... Is It Worth the Cost? 'Graphics Card' Shortage Amid Cryptocurrency Boom"

Bitcoin and altcoin prices are displayed on the digital billboard of the Upbit Lounge, a cryptocurrency exchange in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] A recent survey revealed that the surge in demand for graphics cards due to the cryptocurrency boom has significantly increased the sales of graphics chipset manufacturers.

According to market research firm Jon Peddie Research (JPR), on the 9th (local time), external graphics chipset manufacturers such as Nvidia and AMD recorded combined sales close to $12.5 billion (approximately 13.6 trillion KRW) in the first quarter alone.

The average price of entry-level graphics cards also soared. In the second quarter of last year, the average price of entry-level graphics cards was $142 (about 160,000 KRW) per unit. However, in the first quarter of this year, it jumped to $469 (about 530,000 KRW), more than tripling in price.

JPR cited factors such as ▲component supply issues ▲manufacturing capacity ▲Ethereum mining and gaming demand as reasons for the price increase, stating, "Graphics card prices have been rising since the second quarter of last year and have reached their highest levels since the fourth quarter." In other words, the demand for graphics cards for cryptocurrency mining, such as Ethereum, surged, driving prices up as well.

Previously, in 2017, the widespread expansion of cryptocurrency mining caused the price of the AMD Radeon RX580 graphics card, specialized for mining, to more than double.

As demand for graphics cards continued, shipments increased to 11.8 million units in the first quarter of this year, a 24.4% increase compared to 9.5 million units in the same period last year.

However, the graphics card 'shortage phenomenon' remains. In particular, Nvidia's graphics card 'GeForce RTX 3080 Ti' sold out worldwide immediately after its launch.

Additionally, prices for Nvidia's RTX 30 series reportedly more than doubled. The 'RTX 3080,' which was launched in mid-September last year at around 900,000 KRW, is currently trading for over 2.3 million KRW. Despite being less than a year since its release, the price has more than doubled.

This content was produced with the assistance of AI translation services.