The GPU power going into the ethereum network has dropped by 19% in just one month

The ethereum cryptocurrency’s total network hash rate has dropped by 19% in just a single month. That’s the total power going into generating blocks, and represents the amount of hardware being pointed at the GPU-centric algorithm. This hefty drop in the network hash rate just highlights the huge impact that China’s recent crypto crackdown has had on the industry.

You can see in the graph below (via Etherscan) that the hash rate has started to level out after the recent, significant drops. That would seem to suggest this is purely based on the systemic shutdown of graphics card mines in China.

The Chinese government has looked to stamp out cryptocurrency mining in many regions, such as Sichuan, Yunnan, and Inner Mongolia—those where energy costs were lowest—because of the sheer level of resources those operations were consuming. At the same time financial institutions in the country have been carrying out their own, maybe government mandated, purge on cryptocurrency services and trading.

(Image credit: Etherscan)

All of this means that GPU mining in China, where the bulk of the world’s graphics card mines are to be found, is becoming far less attractive an enterprise. That has led to reports of a growing tide of second-hand graphics cards starting to appear for prices sometimes close to MSRP.