Litecoin (LTC) merge mining is turning into a tool for both security and exposure for new tokens. A small new family of assets is emerging, aiming to repeat the success of Dogecoin (DOGE).
Litecoin (LTC) merge mining is turning into both a security and a marketing tool for new tokens. A small batch of new assets are trying to ride on the fame of LTC and DOGE, while also gaining exposure from major mining pools. Binance Pool has announced the addition of three new assets to its merged mining program – LKY, PEP, and LKC.
Merge mining is the process of producing other coins and tokens in each block of a minable coin. The new production does not make mining more expensive, but creates a secure new asset at virtually no extra cost.
Every Litecoin block has produced DOGE for years, while ensuring cheap transactions on the Litecoin chain. In 2024, the network added BELLS, Luckycoin (LKY), Pepecoin (PEP), and Junkcoin (JKC).
Additional merged mining arrives at a time when the Litecoin hashrate marked new all-time highs. LTC mining was close to 1.8 PH/s, remaining a staple for some of the large pools. The Litecoin network retained its popularity, adding some stability to the LTC market price. After the latest market drawdown, LTC traded at $103.22, recovering some of its lost ground.
DOGE traded at $0.31 during the latest market drawdown. BELLS retained a level of $0.61. JKC traded around $0.22, while PEP retained the $0.0012 level. All the merged mining coins backtracked during the latest market correction. However, those assets also benefitted from the meme token frenzy.
Litecoin remains the fourth largest mined coin, which has retained its influence in the crypto space. Mining has expanded in 2024, as most corporate pools reinvested in the newest ASIC, increasing the capacity for competition and growing each network’s security. Litecoin mining followed the trend of Bitcoin with constant expansion to new all-time highs as new machines come online.
Binance Pool expands access to merged mining
The availability of merged mining coins depends on the decision of every respective pool. Binance Pool has added payouts, though sometimes requiring the end user to provide a suitable wallet.
The Binance Pool has warned that JKC, PEP, BELLS, and LKY remain unlisted, and the addition of mining opportunities does not translate into future listings. Additionally, the reward schedule for all assets are independent of the LTC earned in a block. Binance Pool solves around 10% of all Litecoin blocks.
The Binance Pool started adding new merge mining assets since September, with BELLS becoming the first expansion. The trend of adding new rewards has spread to most major Litecoin mining pools.
ViaBTC and F2Pool offer LKY and PEP, but have not yet added JKC. Other pools still limit their merged mining to DOGE and BELLS. Currently, Binance has announced the widest selection of merged mining assets.
Scrypt mining also retains popularity, with a total of 21 minable assets. Those coins are not available for merged mining, and require different settings. The current profitability of Litecoin mining with 1 GH/s mining power is around $30 per day, based on LTC and DOGE rewards alone. Modern mining ASIC offer more than 9 GH/s, though some rely on competitive pricing.
Merged mining offers a boost to lowered block rewards
Merged mining may prove a valuable bonus depending on the hashrate. As large pools and miners continue to pay attention to the Litecoin network, some of those entities may have large reserves of all merged mining coins.
Merged mining has also existed for Bitcoin, producing Elastos (ELA) tokens, as well as NMC, Syscoin (SYS), and FB, with different rules and proportions. Merged mining can offset some of the lowered block rewards.
Litecoin’s network also remains attractive for its $0.0048 fees for regular transactions. The chain has a highly active turnover, reaching more than 78% of the LTC supply, as the asset is used to move funds between wallets.
The other advantage of Litecoin is its wide reach with legacy services, dating back to the first wave of crypto expansion. LTC now awaits an eventual ETF launch, while still being used for trading, payments, and general transfers.
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Source: https://www.cryptopolitan.com/litecoin-ltc-merge-mining-new-trend/