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Home » Mining and price move in opposite directions for Dogecoin and Litecoin

Mining and price move in opposite directions for Dogecoin and Litecoin

Dogecoin and Litecoin have something in common: the Scrypt mining algorithm that unifies both networks. In fact, this brotherhood appears to be influencing their growth, as their respective hashrates, or computing power, have nearly doubled since February last year. The main reason is that the main pools in the ecosystem offer dual mining for both networks.

When we go into the files, this needs to be pointed out Dogecoin had a computing power of 700 TH/s 1080 TH/s in 12 months, a brand very similar to this one record on the Litecoin network, one of the oldest in the industry. This growth contrasts with the prices of both networks' currencies, which have not performed exceptionally well beyond certain moments.

In a year, DOGE will trade at virtually the same price after its value fluctuated wildly in the markets. Its value is $0.08. Instead, LTC is worth 30% less than it was at the start of 2023 and is now trading at $68 per unit.

As can be seen in this graph, the hashrates of both networks show very slight fluctuations. Spring: BitInfoCharts

What drives Dogecoin and Litecoin mining?

If not price, then what could affect the hash rate growth of these networks? Maybe it comes down to dual mining. This technique allows you to mine two cryptocurrencies (and in some cases more than two, which is why different terms are used) using the same algorithm. ASIC devices (application-specific integrated circuits) are specialized and typically have operational limitations for use on various networks. However, dual mining uses the same power consumption to obtain rewards from two different currencies.

ViaBTC, F2pool, Antpool, Binance and Litecoinpool clearly dominate the mining of both networks and all offer dual mining. Perhaps these networks individually do not provide enough profitability for their miners (especially given the prices of DOGE and LTC), but together the story changes.

Ranking of pools with the highest hashrate for mining Litecoin
Top mining pools and hashrate that miners invest in to mine Litecoin and Dogecoin. Source: Mining Pools Stats

If we look for other factors, such as the emergence of new devices for mining Litecoin and Dogecoin, we will not find much. Bitmain, one of the leading mining equipment manufacturers, launched the Antminer L7 (9.g GH/s) in 2022. The Goldshell LT6 (3.3 GH/s) is about the same age. The LD3 (4.8 GH/s) from Bit Mining Limited is somewhat newer, but has been on the market for 12 months. And the LD4 from the same company, which was launched in May last year.

What these teams have in common is that their trading or marketing is based on the idea of ​​exploiting both networks. It seems that we will see dual mining of Dogecoin and Litecoin for a while.

Some pools like ViaBTC and Minin Dutch even offer solo mining for these networks. An article from CripoNoticias shows which is the best ASIC model for this activity.

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