Many litecoin (LTC) miners who work to secure the blockchain and compete for block rewards have been disconnecting their machinery after the recent “halving” event of the cryptocurrency, network data shows.
Litecoin mining difficulty, a coded measure of how difficult it is to solve the mathematical riddles used to write blocks on the net, has been reduced from 15.93 million on August 4, a day before halving, to 11.40 million August 22 , based on data from the mining group BTC.com. The hash power in the network has also decreased by 28 percent.
Litecoin mining difficulty is designed to automatically adjust every 2,016 blocks, approximately every 4 days, to ensure that the block production interval remains approximately 2.5 minutes according to the average hashing power in the current cycle.
The 28 percent drop in difficulty means that the current level is the lowest since April 29. BTC.com data estimates that the difficulty will continue to decrease by another four percent on the next adjustment date, which expires in three days.
The average 4-day hashing power on the litecoin network has also decreased from 456 terahash per second (TH / s) recorded on August 4 to 326 TH / s on August 22 at 23:54 UTC, when the last occurred Difficulty adjustment – A 28 percent drop.
Chart via BTC.com
The data for the distribution of the three-day hash rate indicates that the miners currently connected to the Poolin mining group represent 23 percent of the total computing power of the network, followed by those connected to Bitmain’s f2pool and Antpool.
The decline in mining interest may not be surprising, as the halving event on August 5 reduced litecoin block rewards from 25 LTC to 12.5 LTC, leaving existing mining equipment with significantly lower profitability.
F2pool data shows that the most profitable miners in the litecoin network, manufactured by InnoSilicon and FusionSilicon, now have a return of between 10 and 20 percent, since the LTC price has dropped from $ 93 before being reduced to half to about $ 74 at the time of publication.
Assuming that the electricity needed to power the miners costs $ 0.04 per kWh, it is estimated that these models bring home a daily profit between $ 0.20 and $ 0.50. At the current price of LTC, older mining equipment like Antmainer L3 and L3 + from Bitmain would make insignificant profits at just over $ 0.01 per day, according to the f2pool index.
Litecoin is the fifth largest cryptocurrency by market capitalization today.
Litecoin image via Shutterstock