Like most cryptocurrencies, Chia too has been dropping in value over the last few months. While it debuted at a price of over $1,200, it’s presently trading for just under $300. That’s a decline of over 80% in less than two months. Looks like whatever was claimed about the currency being less volatile than Bitcoin and Ethereum is plain rubbish. More importantly, its impact on the computer hardware market has been rather significant.
At the time of writing, Chia’s storage footprint is pegged at around 28 Exabytes and continuing to grow. This accounts for roughly 5% of the global HDD shipments, with estimates pointing to an increase to nearly 12% by the end of the year. According to Barclays analyst Tom O’Malley, the impact of ChiaCoin on HDD manufacturers such as Seagate and WD has been very pronounced similar to how Ethereum affects sales of graphics cards from NVIDIA and AMD.
The analyst raised Seagate’s stock rating to a target price of $85, citing a rise in Seagate’s drive margin to more than 30 percent from 27.4 percent in the previous quarter. O’Malley believes that demand for hard drives will surge, and the market is cleaning up low-end hard drive inventory, driven more by high-capacity drives.