Zcash Mining Grows More Profitable as ZEC Rises

3 Min Read Tags:
  • Grayscale Research said Zcash mining rewards were about twice as high per mining rig and four times higher per megawatt-hour than bitcoin mining rewards.
  • Bitcoin miners receive about $35 million in total daily rewards, compared with about $2 million for Zcash miners, according to Grayscale.
  • Grayscale said Zcash mining activity had increased by more than 2.5 times since the start of 2026 as ZEC’s price rose.

Grayscale said on September 11, 2026, that Zcash mining had become more profitable than bitcoin mining on a per-rig and per-megawatt-hour basis amid a sharp rise in ZEC’s price. The higher profitability has encouraged more mining activity, increasing the network’s computing power and strengthening its security, according to Zachary Pendle, Grayscale’s head of research.

Grayscale Research estimated that Zcash miner rewards were roughly twice as high as bitcoin miner rewards per mining rig and about four times higher per megawatt-hour. However, bitcoin miners receive about $35 million in total rewards each day, compared with about $2 million for Zcash miners.

“Due to strong token price performance, Zcash mining has become highly profitable, which in turn encourages more mining activity and reinforces network security,” Pendle noted.

Zcash mining activity rises

Zcash is a privacy-focused cryptocurrency built on principles similar to Bitcoin. Both networks use the Proof-of-Work consensus algorithm, under which miners perform computations to confirm new blocks and earn rewards.

Overall mining activity on the Zcash network has increased by more than 2.5 times since the start of 2026, according to Grayscale. The increase followed ZEC’s price rally, which raised the value of rewards earned by miners.

ZEC surpassed $1,000 in September, while its market capitalization reached $17 billion and placed Zcash among the 10 largest cryptocurrencies by market value. At the time of writing, ZEC traded at $1,138 and had a market capitalization of more than $19 billion, ranking 10th, according to CoinMarketCap.

ETF launch and network upgrade

Market attention toward Zcash increased after the launch of the first spot exchange-traded fund based on ZEC. Shares of Grayscale Investments’ The Zcash ETF, trading under the ticker ZCSH, began trading on NYSE Arca on August 25, 2026.

The network also completed its Ironwood upgrade in July. The hard fork was intended to eliminate a vulnerability in the Orchard pool by creating a new shielded pool for transferring funds and to provide users with proof that no one had exploited the vulnerability.

Source: Incrypted

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