The recent surge in memory and storage hardware prices is significantly impacting the economics of Proof-of-Work (PoW) mining and decentralized storage networks. Over the past six months, DDR5 memory prices have doubled, while the demand for HBM3e chips for AI accelerators is causing a global shift in semiconductor resources. This trend is increasing operational costs for miners and storage providers, prompting a reevaluation of economic models and network decentralization. Filecoin and Monero are among the most affected by these rising hardware costs, which are pushing smaller players out of the market. In contrast, DePIN protocols like Render and Akash are capitalizing on the scarcity of physical resources to gain competitive advantages, highlighting a shift in the competitive landscape of the crypto industry.
Rising Hardware Costs Challenge Crypto Mining and Storage Networks
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