Proof of Work in Focus: A Comprehensive Revenue and Market Share Analysis — October 2023

Introduction:

• Today, I’m diving deep into the Crypto data to provide you with a comprehensive analysis of the Proof of Work (PoW) market share and revenue as of October 2023. This analysis aims to offer valuable insights into the current state of PoW mining, the revenue it generates, and its market share in the crypto landscape.

Methodology

• In order to provide you with this in-depth analysis, I undertook a comprehensive research process that involved aggregating data from a range of blockchain and market APIs. The endeavor was not without its challenges; the crypto space is notably lacking in detailed information, particularly when it comes to small-cap coins and blockchain projects.

• To further complicate matters, certain cryptocurrencies can be mined using a variety of hardware options. For the sake of clarity and relevance in this analysis, I’ve opted to categorize these coins based on the hardware that is most accessible for small-scale miners.

• disclaimer: This analysis is a result of personal research and is intended for informational purposes only. While every effort has been made to ensure the accuracy of the data and findings, there may be errors or omissions. If you come across any inaccuracies or have suggestions for improvement, please feel free to reach out for corrections or edits.

Findings

Market Dominance by Hardware

ASICS:

Total Daily Revenue: $26,358,263

• Percentage of Total POW Daily Revenue: 96.56%

• Bitcoin: $24,096,047 (91.42% of ASICS category)

• Dogecoin: $881,644 (3.34%)

• Litecoin: $234,362 (0.89%)

• Bitcoin Cash: $209,711 (0.80%)

• Kaspa: $719,964 (2.73%)

• The total market cap of ASICS coins is approximately $543 billion.

GPU:

• Total Daily Revenue: $579,957

• Percentage of Total Daily Revenue: 2.12%

• Ethereum Classic: $266,229 (45.91% of GPU category)

• Ravencoin: $53,219 (9.18%)

• Dynex: $80,933 (13.95%)

• The total market cap of GPU coins is approximately $3.569 billion.

CPU:

• Total Daily Revenue: $111,814

• Percentage of Total Daily Revenue: 0.41%

• Monero: $63,426 (56.72% of CPU category)

• Zephyr: $33,068 (29.57%)

• Raptoreum: $4,064 (3.63%)

• The total market cap for CPU coins is approximately $2.755 billion

HDD:

• Total Daily Revenue: $251,014

• Percentage of Total Daily Revenue: 0.92%

• Chia: $251,014 (100% of HDD category)

• The total market cap of Chia is $231.87M.

Analysis

• The data reveals that ASICS mining overwhelmingly dominates the market, accounting for 96.56% of the total POW daily revenue. Within this category, Bitcoin alone contributes a staggering 91.42%.

• In contrast, GPU and CPU mining contribute only 2.12% and 0.41% to the total POW daily revenue, respectively. However, Ethereum Classic and Monero lead these categories, showing that they are still viable options for those who prefer these types of hardware.

• Interestingly, Chia, the only coin in the HDD category, accounts for 0.92% of the total daily revenue, indicating that alternative hardware can also be profitable.

• In the GPU-mining sector, Dynex has quickly become a standout performer, generating more than $80,000 in daily mining revenue in an impressively short period. Launched just in September 2022, it has already climbed to the rank of the second-highest revenue-generating coin for GPU miners. This rapid rise has sparked both interest and debate within the community, as the coin’s workings are not fully understood by everyone. Nevertheless, Dynex’s performance serves as a compelling reminder of the ever-changing dynamics of the crypto mining industry. It highlights that new projects can shake up the existing landscape and provide substantial revenue streams for miners open to diversifying their operations.

One of the most intriguing findings is the performance of Kaspa, a relatively new entrant in the ASICS category. Despite being launched as recently as November 2021 with no private allocations, pre-sales, or pre-mining, Kaspa has managed to carve out a 2.73% share of the daily revenue in the ASICS category ($719,963). This is a non-trivial achievement, especially when you consider that it’s competing with giants like Bitcoin and Litecoin.

The success of Kaspa serves as a compelling case study for why miners and investors should keep an eye on emerging projects. While the crypto space is filled with risks and uncertainties, it’s also a breeding ground for innovation and disruption. The next “Ethereum of PoW” could very well be in its nascent stages, waiting to be discovered.

In a rapidly evolving ecosystem, settling for older, more established blockchains could mean missing out on lucrative opportunities. The crypto world is replete with examples of early adopters reaping exponential rewards. Therefore, a balanced portfolio that includes both established giants and promising newcomers could be the key to maximizing returns.

The rise of Kaspa also raises questions about the sustainability and long-term prospects of older blockchains. Are they agile enough to adapt to new technological advancements, like what Verus Coin did by launching PBaaS (Public Blockchains as a Service), for example, or will they be eclipsed by newer, more innovative projects? Only time will tell, but one thing is clear: complacency is not an option in the dynamic world of crypto.

Conclusion

• In summary, the world of Proof of Work cryptocurrencies is a dynamic landscape filled with opportunities and surprises. While ASICs, led by Bitcoin, continue to dominate the market, newer projects like Kaspa and Dynex are making significant strides. Kaspa’s share in daily mining revenue and Dynex’s rapid rise to become the second-highest revenue-generating coin for GPU miners in just a year are clear indicators that innovation is alive and well in the crypto space. Established blockchains must stay agile to adapt to new technological advancements, as Verus Coin did with its PBaaS launch, or risk being overshadowed by these newcomers.

• As you navigate this ever-changing world, remember to stay informed and adaptable. Don’t just stick to the tried and true; keep an eye out for emerging projects that could be the next big thing. Your hardware choices are crucial, so invest wisely and be ready to pivot when needed. The crypto world is fast-paced, and the next big opportunity might be just a whitepaper away. Stay curious, stay informed, and most importantly, stay engaged.