2024’s Crypto Gold Mine: The Hottest Proof-of-Work Algorithms

As of January 2024, the ranking of the most profitable crypto networks for mining has shifted from what it was in 2022. In September 2022, Kadena held the leading position as the primary mineable proof-of-work (PoW) algorithm, allowing miners to extract kadena (KDA). However, currently, the top spot for the most lucrative PoW network for mining is occupied by kaspa (KAS), which utilizes the Kheavyhash algorithm.

On Sunday, January 21, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower is reported to yield approximately $69 per day, based on current data from asicminervalue.com. This calculation includes the daily electricity expense rate of $0.12 per kilowatt-hour (kWh). Currently, Bitcoin's SHA256 ranks second in terms of profitability, but the recent surge in grin (GRIN) values has propelled the Cuckatoo32 algorithm to higher earnings.

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 the year 2024, the subsequent two mining algorithms boasting the highest profitability are Ethash and Blake2B-Sia. Ethash is linked with cryptocurrencies like ethereum classic (ETC), while miners proficient in managing Blake2B-Sia can extract siacoin (SC) and scprime (SCP). A nearly 6 gigahash per second (GH/s) Ethash hashrate is anticipated to generate approximately $10.40 daily, whereas 17 terahash per second (TH/s) of Blake2B-Sia mining power can yield about $9.27 each day, taking into account electricity costs of $0.12 per kilowatt-hour (kWh).

Subsequent to Blake2B-Sia in the profitability ranking are the X11 and Kadena algorithms. X11 mineable currencies, including dash (DASH) and cannabiscoin (CANN), can deliver a reasonable return with an appropriate hashrate. Specifically, an estimated 2 terahash per second (TH/s) of X11 hashrate is poised to generate around $7.57 daily. As mentioned earlier, the Kadena algorithm has slipped in the ranking, but a substantial 177 TH/s of Kadena hashrate can still generate an estimated $7.47 per day.

Notably, the profitability of Scrypt mining has waned compared to its peak in September 2022. Scrypt, responsible for mining litecoin (LTC) and dogecoin (DOGE), held the second position in terms of profitability at that time. Presently, Scrypt mining occupies the 12th slot among the most profitable algorithms, trailing behind others such as Handshake, 2, Randomx, and Cryptonightr. Ethash previously enjoyed a dominant position in mining algorithms before the Ethereum upgrade, known as The Merge, which transpired on September 15, 2022. Since that crucial event, its profitability has experienced a relatively lackluster performance.