Litecoin (LTC) and Dogecoin (DOGE) witnessed a dramatic surge in their respective hash rates on Sunday, reaching unprecedented levels. This significant increase is directly attributed to the rising profitability of mining these cryptocurrencies, a phenomenon highlighted by a recent report from mining company BIT Mining Limited (BTCM).
According to Coinwarz, Litecoin’s hash rate skyrocketed from 1.48 PetaHashes per second (PH/s) to a new all-time high of 1.7128 PH/s, representing a remarkable 15% increase. Concurrently, Dogecoin’s hash rate briefly surpassed 2.52 PH/s for the first time before settling back to 1.58 PH/s. This surge in hash rate signifies a considerable influx of mining activity, indicating more miners are dedicating computational power to these cryptocurrencies.
The underlying reason for this surge is a substantial increase in mining profitability. Data from BitInfoCharts reveals that Litecoin’s mining profitability reached a near seven-month high of $0.346 per 1 GigaHash per second (GH/s) of invested computational power. Similarly, Dogecoin’s profitability per GH/s also experienced a significant uptick over the past month. This surge in profitability is directly correlated with the recent price increases of both LTC and DOGE. Litecoin saw a 69% price surge over the past month, while Dogecoin experienced an even more impressive 107% growth.
BIT Mining Limited’s announcement last week played a crucial role in driving this trend. The company disclosed that expanding its mining operations to include Litecoin and Dogecoin resulted in a three-fold increase in profits compared to solely mining Bitcoin (BTC). Their report stated that they mined 84,485 LTC and over 227 million DOGE as of November 27th. This successful venture serves as a compelling case study, encouraging other mining operations to diversify their portfolios and potentially fueling further hash rate growth for LTC and DOGE.
While both Litecoin and Dogecoin experienced significant gains, it’s important to note that at the time of writing, LTC is trading at $125.91 (down 4.46% in the last 24 hours) and DOGE at $0.4352 (down 4.35%). This price correction, while notable, does not detract from the significant hash rate surge and the implications for the future of these cryptocurrencies. The increased mining profitability and the successful example set by BIT Mining suggest a potentially sustained period of growth in the hash rates of both Litecoin and Dogecoin, underscoring their continued relevance within the cryptocurrency landscape.
