Kaspa mining accelerates, indicating that big pools boost the hashrate with powerful machines. The Kaspa L1 network aims to provide security, proof of work, and instant transaction validation. A higher hashrate will make Kaspa transactions more secure.
Kaspa’s hashrate expanded to nearly 300 PH/s, which is still a fraction of Bitcoin’s hashrate. The rate is still nearly 20 times larger than Ethereum Classic’s, making it more difficult to attack.
What I think is going on with Kaspa Hashrate 🪡🧵
The initial hashrate increase from December-March was largely retail driven. Thousands of Kaspa fanatics buying 1-2 KS0’s or hosting some KS3’s and KS5’s. This also includes early small scale industrial miners like c#rate… pic.twitter.com/hULbL9Cfn1
— Christian Ludwig (@christi61026749) May 30, 2024
More mining machines are also going on sale, with a wide price range accessible to either new miners or powerful pools.
Kaspa Mining Pool Roster Completely Changed
The growth in hashrate for Kaspa completely changed the list of mining pools. Initially, the growth in mining was community-driven. Over 50% of the hashrate was held by the WoolyPooly.com pool, while small community-driven pools distributed the rest. At this stage, Kaspa mining was extremely low and achieved with as little as 20 powerful mining rigs.
Only months later, the Kaspa network already hosts several multi-coin pools at the top. This includes F2Pool, one of the biggest Bitcoin miners with a capability to quickly add hashing power. F2Pool is influential, since it can both attract smaller miners that share their rigs, or buy rigs of its own.
The interest in Kaspa mining has skewed hardware prices. The Bitmain Antminer KS5 is now on offer for more than $24,000, and is the most expensive and powerful machine on the market. Other vendors offer smaller and cheaper devices, though people question their profitability.
The Kaspa network is no longer open to small-scale or solo mining. To get the block reward, you must join the best pool. The Kaspa team does not control pool creation and hopes that the balance of hash power will happen organically. At the current hashrate, it would be much harder and more expensive for a group of miners to take over 51% of the hashrate.
Kaspa’s network follows one of Satoshi Nakamoto’s earlier suggestions. The Bitcoin creation schedule was supposed to be much shorter. This idea led Kaspa to offer accelerated coin production, with halving coming more often.
Kaspa will have a total of 28.7B coins, with a halving occurring once a year. At the current hashrate, more than 23B coins have already been produced, making up more than 82% of the total supply. The competition for the remaining coins will be fiercer, and after that, miners will have to cover their costs through fees.
Mining Accelerates in Expectation of KAS Price Action
KAS is on track to celebrate its second anniversary since trading started. For the past two years, it has gone from a low-priced coin at $0.00018 to a peak of $0.18. KAS is currently trading at $0.14, with trading volumes close to $50M.
Most KAS trading happens through ByBit, Gate.IO and KuCoin, while hoping for a Binance listing. With the expansion of Kaspa’s popularity, miners may also try to accumulate coins in expectation of positive price action.
I beat the drum on $KAS all of 2023. It takes work to put out content, to spread knowledge. It’s nice to see many more people have taken on the work of sharing the fundamentals, as well.
Many hands make light work. The more the better. We who have conviction all benefit for the… pic.twitter.com/qcWcG0XOWs
— Jim, S𐤊i ₿um ⛷️ (@Cryptographur) May 30, 2024
Because of its large supply, KAS is relatively visible, almost entering the top 30 assets based on market capitalization.
Kaspa has been distributed to around 500K addresses, holding more than a “dust” amount. People are adopting Kaspa relatively slowly in 2024 as they are giving more attention to meme tokens, which can be acquired faster.
The Kaspa community expects price growth to $1 from current levels. However, KAS can only move up if L1 narratives come to the front again. Kaspa’s blockchain uses its DAG structure and speed and mining to grow its influence. The network is still late regarding token creation and value-generating projects.
Let me tell you a story about a guy who had 0 dev skills… (see pictures).
From the creator of https://t.co/4rqX8esCer for $kas stats, I bring you https://t.co/oi76QOv1n8!Deploying a krc-20 token on #kaspa DAG will be a breeze in just a few clicks.
The below are just drafts… pic.twitter.com/vUZbYYxM1r
— Kaspador (@Kaspador) May 24, 2024
In the future, Kaspa may expect to carry products that combine Bitcoin’s security with Ethereum’s use cases. Bitcoin’s tokenization and Ethereum’s developed ecosystem pose significant competition for the blockchain.
Cryptopolitan reporting by Hristina Vasileva