The Changing Landscape of Crypto Mining Profitability
In January 2024, the profitability rankings for crypto mining have undergone significant changes since September 2022. Previously, Kadena held the top position for the most lucrative proof-of-work (PoW) algorithm, but today that title belongs to kaspa and its Kheavyhash algorithm.
Currently, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower can bring in approximately $69 per day. Bitcoin’s SHA256 algorithm ranks second in profitability, while grin’s surge in value has propelled the Cuckatoo32 algorithm to third place.
Operating at the same electricity cost, mining GRIN with a capacity of 36 graphs per second (GPS) can yield a daily profit of $12.29. For Bitcoin’s SHA256 algorithm, hashpower ranging from 335 to 390 TH/s can generate daily earnings of $10.60 to $11.52.
The next most profitable algorithms are Ethash and Blake2B-Sia, with estimated daily profits of around $10.40 and $9.27, respectively. Following them are X11 and Kadena, which can generate about $7.57 and $7.47 per day, respectively.
Scrypt mining, once highly profitable, has diminished in profitability compared to its peak in 2022. Ethash’s profitability has also declined since the Ethereum upgrade known as The Merge.
Hot Take: The Shifting Tides of Crypto Mining
In just over a year, the profitability rankings for crypto mining have experienced significant shifts. As new algorithms gain prominence and the value of different cryptocurrencies fluctuate, miners must constantly adapt to maximize their earnings. The current top-ranking algorithms, such as kaspa’s Kheavyhash and grin’s Cuckatoo32, offer profitable opportunities for those with the right hashpower. However, it’s important to note that the landscape can change quickly, and what is profitable today may not be tomorrow. Mining remains a competitive industry that requires staying informed and making strategic choices to stay ahead.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.