GPU power for ethereum network plummets 19% in one month

Following further restrictions on cryptocurrency mining in China, the overall GPU power contributed to the ethereum network has fallen significantly in just one month.

The total network hash rate – the amount of GPUs working to solve a bitcoin block and create usable currency – fell by 19% in one month, suggesting that China’s crackdown on cryptocurrency is having an effect.

As PC Gamer notes, China has been looking to stamp out cryptocurrency mining in regions with low energy costs – “such as Sichuan, Yunnan and Inner Mongolia” – due to rampant resources being consumed by crypto mining.

NVIDIA GeForce RTX 3080
NVIDIA GeForce RTX 3080. Credit: NVIDIA

As visible on Etherscan, hash rates on the ethereum network have fallen since May 20, just two days after China announced that payment companies and financial institutions could not provide any services related to cryptocurrency (Reuters).

Due to the decreased GPU power, it was taking the bitcoin network around 14-19 minutes to solve a block, up from the usual ten minutes. Since then, Fudzilla notes that the bitcoin code has “automatically made it about 28 percent less difficult to mine” to return block solving back to the ten minute mark.

The surging popularity of cryptocurrency mining has negatively impacted PC gamers looking to build or upgrade their system. In the first quarter of 2021 alone, it’s estimated that around 700,000 graphics cards were bought up by cryptocurrency miners.

Recent signs point to GPU shortages easing to an end, as Nvidia recently announced an increase in RTX 3060 supply which is expected to trickle down to retail markets over the coming months.

In other news, last Friday (July 2) Faze Clan dropped one member and suspended three after an alleged cryptocurrency scam. While the “Save The Kids” cryptocurrency promised a percentage of profit would be donated to charity, fans that bought in quickly saw the crypto value plummet.