Marathon delves into the Kaspa universe
On Wednesday, June 26, Marathon Digital, a bitcoin mining giant, caused a stir in the cryptocurrency market by revealing that it had started mining Kaspa. This strategic move signifies a potential diversification of its revenue stream, venturing beyond the beaten path of bitcoin.
Kaspa, another proof-of-work cryptocurrency, has a unique advantage: speed. Currently valued at just over $15 million, Marathon has mined close to 94 million KAS so far.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/Kaspa?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#Kaspa It has clearly broken the 18 cent barrier and is heading towards 19 cents!
After that we can expect a new all-time high for twitter.com/search?q=%24KAS&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$WHAT!twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#crypto twitter.com/hashtag/pow?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#can twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc pic.twitter.com/ruNt9kfeoL
— KASPA Enthusiast 𐤊 (@KASPAEnthusiast) twitter.com/KASPAEnthusiast/status/1806182039848181770?ref_src=twsrc%5Etfw” rel=”nofollow”>June 27, 2024
Unlike bitcoin's 10-minute block processing time, Kaspa leverages a BlockDAG (Directed Acyclic Graph) architecture, allowing it to produce multiple blocks simultaneously. This translates into faster transaction processing, a potential game-changer in the ever-evolving world of digital payments.
Aligning with profitability: the appeal of Kaspa
Marathon Digital's decision to adopt Kaspa mining was not motivated solely by technological innovation. The company clearly sees an opportunity to increase profitability. Kaspa currently offers miners the chance to earn higher block rewards compared to bitcoin.
Additionally, Marathon secured a significant amount of specialized Kaspa (ASIC) mining hardware last year, which is estimated to generate profit margins of up to 90% under optimal conditions.
Adam Swick, Marathon's chief growth officer, emphasized the strategic importance of this move:
“By mining Kaspa, we are establishing a revenue stream separate from bitcoin, one that directly aligns with our expertise in digital asset computing.”
Swick added that the organization's existing infrastructure, strong relationships with hardware manufacturers and a strong financial cushion position them “perfectly to exploit Kaspa and capitalize on the high margins it offers.”
Is this the dawn of a? New era for Kaspa?
The news that a bitcoin giant has entered the Kaspa market has undoubtedly reinforced investor confidence in the cryptocurrency. The price increase reflects this newfound optimism, as Kaspa inches closer to its all-time high.
However, the cryptocurrency market remains notoriously volatile. While Kaspa's technological advantage and profitability potential are undeniable, its future trajectory depends on several factors, including broader adoption, developer activity, and overall market sentiment.
Related reading
KAS Price Action
With a market size of $4.3 billion at the time of this publication, Kaspa was priced at trading at $0.1799, placing it among the top 25 cryptocurrencies. Additionally, Kaspa's daily trading volume has increased by more than 130% to $140 million. The altcoin is currently trading near its all-time highs and may be on the verge of a price discovery.
Featured image from LiveAbout, chart from TradingView
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
