Litecoin (CRYPTO: LTC) and Dogecoin (CRYPTO: DOGE) recorded a sharp uptick in hash rate on Sunday after a mining company disclosed that the two coins yielded three times the profit as mining Bitcoin (CRYPTO: BTC) alone.
What happened: Litecoin's hash rate jumped from 1.48 PetaHashes per second to a fresh all-time high of 1.7128 PH/s, marking a 15% spike, according to Coinwarz.
Similarly, Dogecoin's hash rate breached the 2.52 PH/s level for the first time on Sunday, before pulling back to 1.58 PH/s at the time of writing.
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Why It Matters: As is well known, hash rate is a measure of the computational power used to solve complex cryptographic puzzles in a blockchain network.
Typically, hash rates jump when more miners, i.e., more computers and mining rigs, join a network. This, in turn, could happen when the underlying cryptocurrency's price is high and mining activity becomes more profitable.
According to BitInfoCharts, Litecoin's mining profitability reached a nearly seven-month high of $0.346 for every 1 GigaHash per second of computational power, or hash rate, invested.
Dogecoin's profitability per 1 GH/s unit of hash rate also rose significantly over the last month.
The profitability likely spiked as both LTC and DOGE gained in value in recent weeks. While LTC soared 69% over the month, DOGE grew a whopping 107%.
These readings come amid disclosure by mining company BIT Mining Limited (NYSE:BTCM) last week that expanding into Litecoin and Dogecoin caused its profits to rise threefold than mining just Bitcoin.
The company said it mined 84,485 LTCs and over 227 million DOGE as of Nov. 27.
Price Action: As of this writing, LTC was trading at $125.91, down 4.46% in the last 24 hours, according to data from Benzinga Pro. DOGE was exchanging hands at $0.4352, down 4.35%.
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