During the opening week of the year, the Kheavyhash algorithm—used for mining kaspa (KAS)—topped the profitability charts among proof-of-work (PoW) algorithms. Fast forward to today, and Scrypt has claimed the crown as the most lucrative choice for miners, particularly those extracting dogecoin (DOGE) and litecoin (LTC).
Mining Algorithms Push Limits in a Historic Year
As 2024 draws to a close, Scrypt stands tall as the most profitable PoW algorithm. Originally introduced by Colin Percival in March 2009, Scrypt gained traction in 2011 when an anonymous developer, Artforz, integrated it into the Tenebrix cryptocurrency. Soon after, it powered Fairbrix and became synonymous with Charlie Lee’s Litecoin network. With Scrypt, miners can also generate dogecoin (DOGE) alongside LTC, maximizing their efforts with specialized hardware.
At the year’s start, Kheavyhash reigned supreme, offering significant returns for kaspa miners. Now, it ranks as the fifth most rewarding PoW algorithm. Back in January, SHA256—Bitcoin’s signature algorithm—secured the runner-up spot. As of now, Blake3, designed for mining decred (DCR) or alephium (ALPH), occupies second place ranking. SHA256 has settled comfortably into the third spot this December to close out the year.
Blake2S, also known as Kadena, started the year as the third most profitable algorithm and now holds fourth place. It enables miners to contribute to the Kadena network while earning KDA. Following Kheavyhash’s fifth spot in profitability is Eaglesong, ranked sixth and primarily used to mine nervos (CKB). Other prominent algorithms like Ethash and Blake2B-Sia are rounding out the list, which continue to offer returns depending on the hashrate produced.
The hardware behind these algorithms comes from industry leaders such as Bitmain and Microbt. Notably, a shake-up in rankings is expected next month with the debut of Bitmain’s Antminer S21e XP Hydro 3U. Boasting a staggering 860 terahash per second (TH/s) SHA256 hashrate, this powerhouse is predicted to become the second most profitable bitcoin miner, elevating SHA256’s standing as well. Over the past year, Litecoin’s hashrate has risen significantly reaching an all-time high of 2.09 petahash per second (PH/s) on Dec. 26, 2024, at block height 2,816,431.
Dogecoin’s hashrate has climbed to its highest level ever, hitting 4.89 petahash per second (PH/s) on Dec. 23, 2024, at block height 5,515,256. Alephium’s network followed suit, achieving its own record-breaking moment on Dec. 28, when its computational power soared to 33.67 PH/s. Meanwhile, Bitcoin’s network shattered expectations in mid-December, reaching an unprecedented peak of over 805 exahash per second (EH/s). Kadena also joined the club this year, achieving its all-time high and solidifying its place in the PoW record books.
The thrilling twists in mining profitability illuminate the tenacity and flexibility of the PoW ecosystem. The industry keeps breaking new ground as Scrypt regains its lead and hardware innovations shake up the rankings. These changes not only showcase the fierce rivalry among miners but also point to an overarching pattern of tech enhancement that shapes the destiny of blockchain-driven networks.
As 2025 approaches, miners and enthusiasts alike remain poised for further transformations. The introduction of cutting-edge equipment and rising network hashrates suggest that the pursuit of efficiency will remain paramount. Whether through breakthroughs in mining algorithms or heightened network capacities, the stage is set for another year of innovation in decentralized systems.
