In September 2022, Bitcoin’s SHA256 algorithm ranked as the seventh most lucrative proof-of-work (PoW) network for mining. Fast forward a year and four months, and this algorithm has ascended to become the third most profitable crypto network for mining operations.
2022 to 2024 Sees Significant Shifts in Crypto Mining Profitability
As of January 2024, the ranking of the most profitable crypto networks for mining has evolved from what it was in 2022. Back in September 2022, Kadena stood at the forefront as the leading mineable proof-of-work (PoW) algorithm, enabling miners to extract kadena (KDA). However, today, the top spot for the most lucrative PoW network for mining is held by kaspa (KAS), which utilizes the Kheavyhash algorithm.
On Sunday, Jan. 21, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower is reported to yield roughly $69 per day, based on current data from asicminervalue.com. This includes the daily electricity expense rate of $0.12 per kilowatt hour (kWh). Currently, Bitcoin’s SHA256 occupies the second spot in terms of profitability, yet the recent surge in grin (GRIN) values has elevated the Cuckatoo32 algorithm in terms of earnings.
Operating under the same electrical cost of $0.12 per kWh, a miner with a capacity of 36 graphs per second (GPS) can achieve a daily profit of $12.29 mining GRIN. Following closely is the SHA256 algorithm of Bitcoin, where machines with hashpower ranging from 335 to 390 terahash per second (TH/s) could yield daily earnings of $10.60 to $11.52, assuming an electricity rate of $0.12 per kWh. The leading producers of these high hashrate-producing devices are Bitmain and Microbt.
In 2024, the next two most profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is linked with cryptocurrencies such as ethereum classic (ETC), while miners capable of handling Blake2B-Sia can extract siacoin (SC) and scprime (SCP). An Ethash hashrate of nearly 6 gigahash per second (GH/s) is estimated to yield around $10.40 daily, whereas 17 terahash per second (TH/s) of Blake2B-Sia mining power can generate about $9.27 each day, factoring in electricity costs of $0.12 per kilowatt hour (kWh).
Following Blake2B-Sia in the profitability ranking are the algorithms X11 and Kadena. X11 mineable currencies, including dash (DASH) and cannabiscoin (CANN), can yield a decent return with the right hashrate. Specifically, nearly 2 terahash per second (TH/s) of X11 hashrate is estimated to generate about $7.57 daily. As previously mentioned, the Kadena algorithm has dropped in the ranking, but a substantial 177 TH/s of Kadena hashrate can still produce an estimated $7.47 per day.
Interestingly, the profitability of Scrypt mining has diminished compared to its peak in September 2022. Scrypt, which mines litecoin (LTC) and dogecoin (DOGE), was the second most profitable consensus algorithm at that time. Today, Scrypt mining ranks as the 12th most profitable algorithm, trailing behind others such as Handshake, 2, Randomx, and Cryptonightr. Ethash previously held a dominant position in mining algorithms before the Ethereum upgrade, known as The Merge, which occurred on Sept. 15, 2022. Since that pivotal event, its profitability has been relatively lackluster.
What do you think about the top mineable consensus algorithms? Let us know what you think about this subject in the comments section below.
