As 2024 approaches its end, Scrypt stands atop the most profitable PoW algorithm mining throne.
Khavyhash Algorithm - Used for Mining (KAS) - Ranks first in profitability among Proof of Work (PoW) algorithms. As of today, Scrypt has claimed the crown as the most profitable for miners, especially those mining Dogecoin (DOGE) and Litecoin (LTC).
Originally launched by Colin Percival in March 2009, Scrypt gained support in 2011 when an anonymous developer, Artforz, integrated it into the Tenebrix cryptocurrency. Shortly thereafter, Scrypt powered Fairbrix, becoming synonymous with Charlie Lee's Litecoin network. With Scrypt, miners can also generate Dogecoin (DOGE) and LTC, maximizing their roles through dedicated hardware.
At the beginning of the year, Kheavyhash ruled supreme, providing substantial returns for Kaspa miners. Now, it ranks as the fifth PoW algorithm. Back in January, SHA256, the signature algorithm for Bitcoin, took second place. To date, Blake3 designed for mining (DCR) or Alephium (ALPH) ranks second. SHA256 has comfortably ranked third this December.
Blake2S, also known as Kaspa, was the third most profitable algorithm earlier this year, now ranked fourth. It allows miners to earn KDA while contributing to the Kaspa network. In fifth place for profitability is Eaglesong, ranked sixth, primarily used for mining Nervos (CKB). Other prominent algorithms, such as Ishash Blake2B-Sia, are rounding out the list as it continues to provide returns based on the generated hashrate.
The hardware behind these algorithms comes from industry-leading manufacturers like Bitmain and Microbt. Notably, with the debut of Bitmain's Antminer S21e XP Hydro3U next month, the rankings are expected to change. Boasting an impressive 860 Terahashes per second (TH/s) SHA256 hashrate, this power plant is anticipated to become the second most profitable Bitcoin miner, enhancing the position of SHA256 as well. Over the past year, Litecoin's hashrate has significantly increased, reaching a historic high of 2.09 petahashes per second (PH/s) on December 26, 2024, at block height 2,816,431.
The hashrate of Dogecoin has soared to historic levels, reaching 4.89 petahashes per second (PH/s) on December 23, 2024, at block height 515256. The Alephium network also followed closely, achieving its own record moment on December 28, with its computing power skyrocketing to 33.67 PH/s. Meanwhile, the Bitcoin network broke expectations in mid-December, reaching an unprecedented peak of 805 Exahashes per second (EH/s). Kaspa also joined this club this year, achieving historic highs and solidifying its position in the PoW record book.
The exciting turn of mining profitability illustrates the resilience and flexibility of the PoW ecosystem. As Scrypt regains its leading position, hardware innovations shake up industry rankings, constantly exploring new frontiers. These changes not only showcase the fierce competition among miners but also indicate an overall pattern of technological enhancement that determines the fate of blockchain-driven networks.
With just two days until 2025, miners and mining enthusiasts are still preparing for further transformations in mining algorithms, with the introduction of cutting-edge equipment and the continuously rising network hashrate indicating that the pursuit of efficiency will remain a top priority.
