Grayscale Research reports that Zcash mining currently offers higher profitability for individual operators compared to Bitcoin. While Bitcoin leads in total network scale, Zcash provides approximately double the daily revenue per mining machine. Furthermore, Zcash generates about 4 times the revenue per megawatt-hour of electricity consumed.
The surge in Zcash profitability is largely attributed to the asset's recent price performance. On September 4, the price of ZEC exceeded $1,000 for the first time in nearly a decade and currently trades near $1,177. This price increase has led to a more than 2.5-fold rise in total Zcash mining activity year-to-date.
Despite these figures, Grayscale notes that direct comparisons are complex due to different hardware requirements. Bitcoin utilizes SHA-256 ASICs, whereas Zcash relies on Equihash-optimized equipment. Additionally, the analysis focuses on revenue rather than net profit, which remains dependent on electricity costs, hardware prices, and maintenance.
Bitcoin continues to dominate in total daily rewards, generating approximately $35 million compared to $2 million for Zcash. Grayscale also highlights that its Zcash Trust was converted into a spot ETF, ZCSH, which listed on NYSE Arca on August 25 and accumulated over $500 million in assets within two weeks.
