The price of graphics memory stops rising due to declining crypto market

High prices and a lack of graphics cards are attributed to the lack of circuits, but it is not only graphics circuits whose supply is scarce. Lack of DRAM circuits for graphics memory also puts a dent in the wheel, something that extends from slightly older GDDR5 to modern GDDR6 and Nvidia-exclusive GDDR6X.

DRAM circuits saw a huge price increase of 200 percent in the previous year and in May 2021 were still 100 percent above the contract prices. In mid-June, the analysis company Trendforce reported a continued price increase during the year. Now they are releasing a new report where they change and instead it is predicted that prices will level out.

Unlike the previous analysis, Trendforce analysts now point to a small increase during the third quarter of the year and above all that prices stop increasing during the fourth quarter of the year and instead remain at the same level. This is attributed to an increasingly deteriorating market for cryptocurrencies.

According to the report, it appears that ethereum (ETH) in particular is less profitable and that sudden decreases in the value of cryptocurrencies have resulted in a reduction in the need and interest in graphics cards. As a result, the second-hand market has also been flooded with relatively cheap graphics cards that were previously used to break cryptocurrencies.

The graphics card market currently sees slightly lower prices than before. Cheaper DRAM circuits may mean that prices to end consumers fall further, but these are probably not huge sums. Of all the components on a graphics card, GDDRs are a relatively small part of the cost.

The analysis company also notes that the contract prices for graphics memory will most likely continue to increase slightly during the third quarter of the year, as there is still high demand for DRAM circuits. In addition, memory manufacturers currently prioritize manufacturing for the server category, whose DDR memories are manufactured on the same production lines as GDDR memories. However, those who continue to suffer the most are small and medium-sized customers.

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