Monero Mining Profitability Falls To New Lows – XMR Is Struggling Above $52
Monero cannot seem to recover in terms of pricing, and the coin keeps struggling above $52.
Mining profitability drops to new lows
The latest data coming from BitInfo Charts revealed that the mining profitability on the Monero blockchain has fallen to new lows.
This shows returns that are lower than even the ones that have been recorded between February and March earlier this year.
The chart also showed that the profitability has been dropping since back in June and it marked an almost 87.4% drop in profitability ever since.
It’s important to note that this drop in profitability followed a recent surge in the Monero hashrate which tripled in value following the latest upgrade that Monero went through.
You may recall that one of the most important upgrades that this change included is the shift of the mining algorithm from CryptoNightR to RandomX.
This new algorithm puts ASIC miners at a disadvantage, and it also limits GPU mining to an extent.
AMBCrypto notes that “BitInfoCharts also showed that mining hash rate rose from an 8-month steady ~309 MH/s till just before the RandomX upgrade on 29 November, which caused it to rise to 950 MH/s over the next nine days.”
At the moment of writing this article, XMR is placed on the 14th position on CMC and the privacy-oriented coin is trading in the red. XMR is priced at $52.13.
XMR’s price did not affect the mining profitability
Price fluctuation of Monero since the upgrade probably has less to do with the decrease in the mining profitability.
Since back on November 30th, Monero has not risen above $55, back then, the coin hit around $56.30 and went as low as $52 since then.
The online publication mentioned above notes that the mining profitability looks like it could recover through a bull run in the altcoin market.
Despite the massive volatility of the crypto market, optimistic predictions regarding prices keep appearing.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.