Zcash Rallies to Nine-Year High as Mining Profitability Outpaces Bitcoin Fourfold

Privacy-focused cryptocurrency Zcash has reached a nine-year high of nearly $1,155 as its mining profitability outpaces Bitcoin fourfold. The token's climb is driven by both speculative demand and fundamental shifts in mining economics that make ZEC more lucrative to produce than BTC on an energy-adjusted basis.

A research note from Grayscale highlighted the gap between the two proof-of-work networks, with Zach Pandl estimating that Zcash miners earn about twice as much daily revenue per mining rig as their Bitcoin counterparts. Measured per megawatt-hour of electricity consumed, the advantage widens to roughly four times.

The shift in mining economics has led to a surge in ZEC's mining activity, with the network's hashrate reaching 27.9 GSol/s on September 10, climbing to 91% of its all-time high. The increased security can support investor confidence and potentially reinforce price gains.