Zcash mining activity grows 2.5x as profitability exceeds Bitcoin

Grayscale research indicates that Zcash (ZEC) mining activity has increased more than 2.5 times this year, driven by strong token prices and improved profitability. According to Grayscale Head of Research Zach Pandl, current valuations allow Zcash mining rewards per machine to reach approximately twice the daily rewards of Bitcoin (BTC) mining equipment.

When measured by energy efficiency, the advantage is even more pronounced, with Zcash estimated to generate roughly four times the revenue per megawatt-hour of electricity compared to Bitcoin. This increased profitability is encouraging more computing power to join the network, which in turn strengthens Zcash network security.

It is important to note that these comparisons involve different hardware; the analysis utilized the Bitmain Z15 Pro for Zcash and the Bitmain S23 Hydro for Bitcoin. Because the mining algorithms and specialized equipment are not interchangeable, the higher revenue per unit of electricity does not imply that a single piece of hardware can be switched between networks to achieve these results. Actual miner profits remain subject to variables such as electricity costs, equipment depreciation, and mining difficulty.