Both the mining difficulty and the hashrate of Dogecoin (DOGE) are at a high level despite the recent price performance. This is evident from new figures from messari† Both indicators set a new All-Time-High (ATH).
High Hashrate & Difficulty
A high hashrate of a cryptocurrency can now be regarded as a requirement that traders and miners have. Such a high hashrate and network difficulty are often seen as a positive signal. This is because it shows that miners are interested in supporting block processing on the network and keeping a steady stream of new coins in the market.
A disadvantage of a higher hashrate is that miners spend more resources processing new blocks. This is because the difficulty of the network generally increases in proportion to the hashrate. There are some events to counter this, as Bitcoin does with its halving events.
Do you want to trade Dogecoin on one of the largest and most reliable exchanges in the world? †
Dogecoin price performance
To keep miners on the network, the price of the token that is mined is of great importance. Over the past 120 days, DOGE mining profitability has declined. It is therefore important that this changes quickly so as not to lose miners. Despite the recent market recovery, Dogecoin’s value has fallen by about 30% since January.
In March, Dogecoin rose 14%. This came after it was announced that the memecoin was added to various Bitcoin ATMs. Do you want to know more about this? Click here to go to the relevant article.