The Dogecoin hash rate has risen sharply and reached new record highs. This bullish development reflects increasing network activity and miner participation. The increase is also consistent with recent ones positive shift in Dogecoin’s momentumwhich have been strengthened by favorable market conditions and sentiment.
Dogecoin Hashrate Reaches New ATH
Dogecoin mining activity is experiencing a major upswing as its hash rate recently hit a new ATH. This impressive milestone indicates strong network security and growing confidence of miners in Dogecoin.
Crypto analyst Master Kenobi announced this bullish development in an X (formerly Twitter) message on November 20. The analyst revealed that DOGE mining activity could change over time more profitablemore stable and less stressful for miners than Bitcoin mining.
Master Kenobi’s analysis is especially notable because Bitcoin’s cyclical halving eventswhich take place every four years and halve miners’ pay. Bitcoin’s halving also reduces the rate at which new coins are available, reducing its supply while resulting in lower profits for it Bitcoin miners.
Without halving events like Bitcoin, Master Kenobi reveals that Dogecoin offers more predictable rewards and enables long-term stability for miners. Moreover, this stability can potentially increase the value of the meme coin and strengthen network security, increasing trust in its ecosystem.
The Dogecoin hash rate is calculated based on the number of calculations performed per second to solve a hash on the blockchain. At the time of the ATH, DOGE’s hash rate was 1.5 PH/s. Now, however, the hash rate has increased slightly to 1.52 PH/s.
Interestingly, the spike in Dogecoin’s hash rate to new ATHs comes as the meme coin registers a surge of momentum. The past few weeks have Dogecoin has posted triple-digit gainswith a price increase of more than 169% this month alone. CoinMarkeCap’s data also shows that the meme coin’s price is currently trading at $0.385.
This price increase has caught the attention of the crypto market, and with the increase in hash rate, Dogecoin is steadily cementing its position as the number one meme coin in the crypto market.
DOGE Mining Vs. Bitcoin mining
In his X-post, Master Kenobi reveals that Dogecoin and Bitcoin operate on fundamentally different networks. Each cryptocurrency uses different hashing algorithms, making mining compatibility between both ecosystems virtually impossible.
While DOGE works on the Scrypt algorithm, which is optimized for a different class of Application Specific Integrated Circuits (ASICs)Bitcoin, on the other hand, relies on the SHA-256 algorithm, which requires ASICs specifically designed for this type of hashing.
This notable distinction prevents miners from switching between networks, strengthening the independence of each blockchain network. Furthermore, the difference in hashing algorithms ensures that there is no overlap in hardware tools and prevents the risk of a network being compromised by the mining resources of others. This ultimately improves security for both the Dogecoin and Bitcoin ecosystems.
Featured image created with Dall.E, chart from Tradingview.com