Dogecoin [DOGE] had an incredible start this year, bringing a record number of miners to its network. DOGE’s all-time mining revenue hit a new peak at $1 billion in the month of November, according to the latest stats provided by data analytics platform, Coin Metrics. Earlier on November 13, 2021, the total all-time miner’s profit exceeded the $1 billion mark for the first time. As of December 9, the overall miner’s income currently stands at $1.08 billion.
It is worth mentioning that the total revenue of the meme coin mined on January 1st, 2021 touched $108 million. Since then, it has increased tenfold as the asset gained popularity and garnered public attention.
Notably, the growth in miners’ revenue started gaining traction and accelerated during the month of April and May, which coincides with the surge in the price of DOGE in the broader market, as investors began to turn their attention to the asset around this period. As a result, this provided an opportunity for the miners to reap benefits from the coin’s increasing popularity.
The principle behind Dogecoin mining
Dogecoin’s network employs the same principle as Bitcoin [BTC], Litecoin[LTC], and many other assets, by adding new blocks and reaching agreement among its network operators. In particular, DOGE and LTC use a common hashing algorithm called Scrypt enabling both to “merged mined”. This meant that both coins can be minted simultaneously without affecting operational efficiency.
As a matter of fact, the two asset shares a common algorithm because dogecoin’s protocol is based on Luckycoin [LKY], which in turn was designed from Litecoin. Comparing the two, leading crypto blogger Colin Wu observed,
“Dogecoin miners’ income has increased significantly this year. As of December 9th, the total income is $1.08 billion. The mining mechanism of Dogecoin is a bonus for mining Litecoin, but the income this year has exceeded that of Litecoin.”
At press time, Dogecoin is trading at $0.16, rising by 1.4% in the past 24 hours. On the weekly index, the asset declined by 3.87%. The canine token has been on a downward trend since its previously established peak of $0.7004 on May 8, this year.