The Most Profitable Proof-of-Work Algorithms in 2024
January 22, 2024 | by stockcoin.net
In the rapidly evolving world of cryptocurrency mining, the landscape of profitable proof-of-work (PoW) algorithms has seen significant shifts in recent years. As of January 2024, the most lucrative crypto networks for mining have undergone notable transformations compared to their rankings in 2022. While Bitcoin’s SHA256 algorithm has risen from being the seventh most profitable to the third, the top spot now belongs to kaspa (KAS), which utilizes the Kheavyhash algorithm. Other algorithms such as Cuckatoo32, Ethash, and Blake2B-Sia also feature prominently in the list of profitable mining options. However, Scrypt mining, once highly profitable, has seen a decline in profitability. As the cryptocurrency mining industry continues to adapt, miners must keep a close eye on the changing landscape to maximize their profits.
2022 to 2024 Sees Significant Shifts in Crypto Mining Profitability
In the world of cryptocurrency mining, the landscape is constantly changing. From the algorithms used to mine different cryptocurrencies to the profitability of each algorithm, there are always new developments and shifts to consider. Over the past couple of years, from 2022 to 2024, there have been significant changes in the profitability of various proof-of-work (PoW) algorithms used in crypto mining.
Kaspa (KAS) and the Kheavyhash Algorithm Take the Top Spot
In January 2024, the most profitable PoW network for mining is currently kaspa (KAS) using the Kheavyhash algorithm. Kaspa has surpassed Kadena, which was the leading mineable algorithm in September 2022. With 9.2 terahash per second (TH/s) of Kheavyhash hashpower, mining Kaspa can yield approximately $69 per day, considering the current electricity expense rate of $0.12 per kilowatt hour (kWh). The ascent of Kaspa to the top spot demonstrates the ever-evolving nature of the crypto mining industry.
Grin (GRIN) and the Cuckatoo32 Algorithm Soar in Profitability
Another algorithm that has experienced a significant increase in profitability is the Cuckatoo32 algorithm used by Grin (GRIN). With a hashpower capacity of 36 graphs per second (GPS), mining GRIN can generate a daily profit of approximately $12.29 when considering the electricity cost of $0.12 per kWh. This surge in GRIN’s value has elevated the Cuckatoo32 algorithm’s profitability, placing it among the top algorithms for crypto mining in 2024.
Bitcoin’s SHA256 Algorithm Holds Strong in Profitability
Bitcoin’s SHA256 algorithm has consistently been a profitable option for crypto mining. Although it has dropped to the third spot in terms of profitability, it remains a reliable and lucrative choice for miners. Machines with hashpower ranging from 335 to 390 terahash per second (TH/s) can yield daily earnings of $10.60 to $11.52, assuming an electricity rate of $0.12 per kWh. Bitmain and Microbt are the leading producers of high hashrate-producing devices for Bitcoin mining.
Ethash and Blake2B-Sia Algorithms Follow in Profitability
The Ethash algorithm, associated with cryptocurrencies like ethereum classic (ETC), continues to be profitable for miners. With an estimated hashrate of nearly 6 gigahash per second (GH/s), Ethash mining can generate around $10.40 in daily profits. On the other hand, the Blake2B-Sia algorithm, used to mine siacoin (SC) and scprime (SCP), can yield approximately $9.27 each day with a hashrate of 17 terahash per second (TH/s).
X11 Algorithm and Mineable Currencies like Dash (DASH) and Cannabiscoin (CANN)
The X11 algorithm, which is used to mine cryptocurrencies such as dash (DASH) and cannabiscoin (CANN), remains a profitable choice for miners. With a hashrate of nearly 2 terahash per second (TH/s), X11 mining can generate about $7.57 in daily profits. Despite dropping in the ranking, the Kadena algorithm still offers profitability. A substantial 177 TH/s of Kadena hashrate can produce an estimated $7.47 per day.
Kadena Algorithm Drops in Ranking but Remains Profitable
While the Kadena algorithm has dropped in the ranking of profitability, it still remains a viable option for miners. With a hashrate of 177 TH/s, mining with the Kadena algorithm can generate approximately $7.47 per day. While it may not be at the top of the list, it demonstrates that profitability can still be achieved even outside the top-ranked algorithms.
Scrypt Mining Sees a Decline in Profitability
One interesting development in the crypto mining industry is the decline in profitability of Scrypt mining. Scrypt, which is used to mine litecoin (LTC) and dogecoin (DOGE), was once the second most profitable algorithm in September 2022. However, it has now dropped to the 12th position, trailing behind other algorithms such as Handshake, 2, Randomx, and Cryptonightr. This decrease in profitability showcases the ever-changing nature of the industry and the need for miners to adapt to new trends and technologies.
Other Profitable Algorithms
Apart from the algorithms mentioned above, there are several other profitable algorithms for crypto mining. Some of these include Handshake, 2, Randomx, and Cryptonightr. As the industry continues to evolve, new algorithms may emerge and gain popularity, altering the profitability landscape even further.
The period from 2022 to 2024 has seen significant shifts in the profitability of different PoW algorithms used in crypto mining. From the rise of Kaspa and the Kheavyhash algorithm to the increased profitability of Grin and the Cuckatoo32 algorithm, the mining landscape is constantly changing. Bitcoin’s SHA256 algorithm remains a reliable option, while algorithms like Ethash, Blake2B-Sia, X11, and Kadena still offer profitability despite their shifting rankings. It is important for miners to stay informed about these changes and adapt their mining strategies accordingly to maximize their profits in this dynamic industry.