TLDR:
- Zcash mining rewards are roughly twice Bitcoin’s per rig, according to Grayscale Research estimates.
- Zcash miners earn about four times more per MWh than Bitcoin miners under current conditions.
- Total Zcash mining activity has risen more than 2.5x this year as profitability improves.
- ZEC trades at $1,168.43 after gaining 14% over seven days, CoinGecko data shows.
Zcash mining has become significantly more profitable than Bitcoin mining on an individual basis, according to Grayscale Research.
The firm estimates ZEC miners earn roughly twice as much per rig and four times more per megawatt hour than Bitcoin miners. That profitability has coincided with a more than 2.5-fold increase in Zcash mining activity this year.
ZEC also climbed 14% over the past seven days as mining economics strengthened across the network.
Zcash Mining Profitability Overtakes Bitcoin Returns
Bitcoin miners currently generate about $35 million in rewards each day, while Zcash miners receive roughly $2 million. Bitcoin therefore remains far larger in terms of total daily miner rewards.
The difference changes when miners compare returns at the individual level. Grayscale Research estimates Zcash mining generates around twice the rewards per mining rig each day.
The gap grows further when electricity use enters the calculation. Zcash mining currently produces about four times the rewards per megawatt hour compared with Bitcoin mining.
The two networks use proof-of-work mining, but their mining hardware cannot operate interchangeably. Miners on both networks compete to solve computational challenges and produce hashes against a network target.
Both networks also adjust that target to maintain relatively steady block times. Zcash adds privacy features to a Bitcoin-like monetary design, according to Grayscale’s research.
ZEC Price Gains Push Zcash Mining Activity Higher
Zcash’s mining economics have improved alongside its token price. Grayscale links the rise in profitability to stronger ZEC price performance and increased mining participation.
Network activity has now increased more than 2.5 times this year. Higher mining activity adds computational power to the network and strengthens its proof-of-work security.
Grayscale describes a feedback loop between ZEC’s price and mining activity. Higher token prices can improve mining returns, which can attract additional miners and increase network security.
Current market data also shows strong momentum in ZEC trading. CoinGecko data puts Zcash at $1,168.43, with $1.93 billion in 24-hour trading volume.
ZEC has gained 4.05% over the past 24 hours and 14% over seven days. Those gains have lifted the value of mining rewards, improving the economics for miners operating Zcash hardware.
Still, analystb ArdiNSC has warned that ZEC’s rapid advance has pushed price far above its cycle mean. The analyst said previous large rallies eventually reverted toward an acceptance range after similar extensions.
That view does not call for an immediate reversal. Instead, it points to a changing risk profile as traders enter after ZEC’s move toward $1,200.
