Dogecoin cryptocurrency miners are reaping the benefits once the cost hits an all-time high, new figures show. While the cost of Dogecoin is down from last week, data from analyst firm ByteTree shows miners cashed in a record €1 million on April XNUMX, an increase of XNUMX%. since the beginning of the year. Although a huge increase in transaction fees is factored into the equation, the increase in miner revenue can be primarily attributed to the rise in value of Dogecoin. Since January XNUMX, the cost of Dogecoin has risen by around XNUMX%, at the tail end of Bitcoin's bull run. "Transaction fees have increased, but the costs are outpacing," said Charlie Morris, CIO of ByteTree. “The market has squeezed more. I suspect that quite a few people owned a few years ago forgot, leading to a tighter offer than was perceived.
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Dogecoin mining
Launched in XNUMX by IBM developer Billy Markus and Adobe data scientist Jackson Palmer, Dogecoin was supposed to satirize the online frenzy surrounding cryptocurrencies at the time. Since then, however, it has become a cult symbol embraced by a growing and loyal following. The coin has also been endorsed by multiple celebrities such as Snoop Dogg, Gene Simmons, and especially Elon Musk. For a brief period last week, already before what the online community called "DogeDay", the token still surpassed Cardano, XRP and Tether to become the fourth largest cryptocurrency on the planet. In the same way as with Bitcoin and other digital currencies that employ the Proof-of-Work (PoW) arrangement, Dogecoin miners earn both transaction fees and newly minted coins in exchange for validating transactions over the internet. With a simultaneous increase in transaction fees and the cost of the token itself, Dogecoin mining operations have become more profitable than ever. However, for every Dogecoin supporter, there is an equally passionate disbeliever. Some specialists assert that the extreme increase in the value of the currency is totally separate from any realizable value in the real world, influenced by the actions of prominent figures in social networks and the desire to profit from the crypto bull run. Others suggest that the cryptocurrency is precariously balanced, with nearly XNUMX% of Dogecoin tokens held by just XNUMX wallets (the largest wallet at XNUMX%). Concentrating supply in just a few hands creates a situation where a sale could see the cost of Dogecoin collapse in on itself, removing billions and billions of dollars from the market and reducing mining revenue at the same time. Via CoinDesk