Copy link
Increase text size
Decrease text size
Link copied

Ethereum’s switch to the proof-of-stake (PoS) model could reduce demand for GPUs

Ethereum blockchain’s upcoming shift from the current proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model, also known as the “Merge,” will remove the need for Ethereum (ETH) miners and reduce energy requirements.

Image by: Stock Catalog / Flickr

Mon, 27 Jun 2022, 16:12 pm UTC

Morgan Stanley expects the demand for graphics processing units (GPUs) to decline later this year. This could happen once the Ethereum blockchain’s planned switch to a proof-of-stake (PoS) model is completed.

In a report published on Monday, Morgan Stanley said that the Ethereum blockchain’s shift from the current proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model, also known as the “Merge,” will remove the need for Ethereum (ETH) miners and reduce energy requirements, Coindesk reported. Without miners, there would no longer be a demand for GPUs for use in ETH mining.

However, miners might still have more than enough time to prepare for their exit from the scene. While Ethereum developers are hoping that the Merge will happen as early as August or by September, Morgan Stanley pointed out that, considering previous delays, it is possible that the implementation would be postponed until early next year.

Morgan Stanley estimated that GPU demand from crypto mining accounts for around 14 percent of revenue in 2021. On top of that, the demand from crypto miners resulted to a major shortage that “boosted overall mix and pricing.”

While GPU demand is expected to decline upon the upgrade of the Ethereum network, it won’t likely seriously affect Nvidia’s performance this time. According to the bank, Nvidia is currently less exposed to crypto mining demand than it was between 2017 and 2019.

While both AMD and Nvidia say that they have already taken steps to minimize the effect of diminished crypto mining demand, the bank believes that there will be a correction in gaming GPU in Q1 2023 due to a combination of factors. These include lesser people working from home, the migration to PoS, and “tough sequential comps after channel inventory rebuild in 2022.”

Ether (ETH) miners are expected to sell their GPUs after the Merge. The reason for this is that it won’t be profitable to repurpose the GPUs to mine other cryptocurrencies.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

  • Bitcoin (btc) $24,052.00 (+3.31%)
  • Ethereum (eth) $1,833.04 (+7.59%)
  • USD Coin (usdc) $0.998136 (-0.52%)
  • BNB (bnb) $331.57 (+3.73%)
  • XRP (xrp) $0.377941 (+1.58%)
  • Bitcoin (btc) $24,052.00 (+3.31%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.