After years of planning, Ethereum’s much-anticipated switch from proof-of-work to proof-of-stake took place today. The “Merge” means that Ethereum mining is dead, which is good news ahead of new GPU releases from Nvidia and AMD later this year.
The shift from proof-of-work to proof-of-stake means that transactions on the Ethereum blockchain are now processed using portions of the currency that are staked, with those choosing to lock up their funds being rewarded for doing so. In the past, transactions relied on massive amounts of computational power to process these same transactions, providing rewards for those lending their GPU processing to the cause.
This is one of the biggest reasons GPU prices spiked so drastically during the COVID-19 pandemic, exasperated by the lack of supply. In the last few months, as the price of Ethereum has fallen, GPU prices have quickly nosedived too, and are likely to continue doing so now that numerous mining establishments will be either closing up or attempting to move onto a new cryptocurrency to try and profit off of.