Popular crypto YouTube channel “VoskCoin,” boasting over 600k subscribers, posted a viral video this week. They outlined reasons why ALPH could potentially produce KAS-like gains in the upcoming bull cycle.
Kaspa (KAS) has been highly profitable for miners, providing incredible returns with the potential for a 20x gain for early adopters. ALPH is now drawing attention due to its minable nature, similar to KAS.
Kaspa, using BlockDAG technology, is currently the 27th largest cryptocurrency by market cap at around $4 billion. Interestingly, KAS isn’t listed on major exchanges like Binance, Coinbase, or Kraken, yet it remains an important player in the crypto market.
On the other hand, ALPH Coin ranks 280th by market cap with around $140 million. While its market cap is far smaller than KAS, ALPH has gained 856% in the past year, outperforming Kaspa’s 352% gain. This impressive growth suggests ALPH has the potential for further increases, possibly 10x or 20x.
Mining Profitability and Emissions
Kaspa’s mining rewards are slowing down due to emissions stepping down over time. The coin will become more challenging to mine, with a reduction in mining profitability expected in the next year.
The emissions (new coins mined daily) for ALPH are much lower, only about $80,000 per day, compared to $1.25 million for Kaspa. If ALPH grows similarly to Kaspa, its daily emissions could rise significantly.
ALPH’s mining uses a method called “Proof of Less Work”, which aims to reduce energy consumption by burning ALPH tokens instead of increasing computing power at scale, capping the energy usage for large miners.
Currently, ALPH mining is highly profitable, with top-tier miners earning up to $192 per day, potentially making $70,000 per year. Kaspa miners, like the KS5 Pro, also remain very profitable but will see declining rewards as emissions step down.
Both ALPH and KAS are competing for a place as scalable, decentralized blockchain platforms. While ALPH is trying to differentiate itself with innovative sharding and proof of less work, it remains to be seen if it can replicate Kaspa’s success.
The video discusses the risks of mining in the current market, with many miners potentially overestimating future profits, especially as competing against large mining farms becomes harder.
While ALPH could be in a good position for the next market cycle, it’s unlikely to replicate Kaspa’s exact trajectory. The key to ALPH’s success lies in the market’s direction. If a new bull run occurs, ALPH could gain major value.
However, it’s important to note the worst-case scenario: ALPH could become like Kadena, where mining rigs were highly profitable for a short time before collapsing, leading to significant losses for miners.
Read also: Analyst Shares a List of Top 9 Crypto Tokens That Could Do 100x – Hint: Not $XRP or $ADA
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