Miners Flock to Alephium and Kaspa as Bitcoin’s Hashprice Hits New Lows

Amid the ongoing challenges in Bitcoin mining profitability, miners are increasingly turning their attention to alternative proof-of-work (PoW) networks, particularly Alephium (ALPH) and Kaspa (KAS). As Bitcoin’s hashprice continues to struggle, ranking fourth in profitability, these two emerging digital currencies have quickly gained traction, offering significantly higher returns for miners, according to Bitcoin.com.

On August 21, 2024, data revealed that Bitcoin's SHA256 algorithm is now outperformed by algorithms such as Blake3 and Kheavyhash, which power Alephium and Kaspa, respectively. The most profitable Bitcoin mining rig, Microbt’s Whatsminer M63S, generates a modest $9.08 per day, while a Blake3-powered Bitmain ALPH miner AL1, delivering 15.6 terahash per second (TH/s), can yield an impressive $308 per day after accounting for electricity costs. Similarly, Bitmain’s KS5 Pro, which mines Kaspa, produces about $26.48 per day, underscoring the growing profitability of these alternative networks.

Alephium, a Layer 1 blockchain utilizing the innovative proof-of-less-work (PoLW) consensus mechanism, has seen its hashrate surge from 500.8 TH/s in February to an impressive 2,850 TH/s today. Despite trading 59% below its all-time high of $3.86, ALPH remains a lucrative option for miners, with the upcoming AL1 Pro miner expected to generate $327 daily when it launches in September.

Kaspa, utilizing the Ghostdag protocol, has also reached new heights with its hashrate currently around 824 PH/s. Over the past year, KAS has risen 283% in value, making it one of the most attractive PoW assets for miners today. This shift in mining focus reflects a broader trend within the industry, where miners are increasingly exploring alternative coins as Bitcoin’s profitability wanes.

As the crypto mining landscape evolves, major players like Marathon Digital Holdings (MARA) have already disclosed ventures into mining KAS, signaling a potential industry-wide shift. With Alephium and Kaspa offering significantly higher returns, the days of Bitcoin’s dominance in the mining sector may be numbered.