Deep Dive
1. Mining Economics (Bullish Impact)
Overview: Qubic’s Useful Proof-of-Work (uPoW) model converts 50% of mined Monero (XMR) into QUBIC buybacks and burns, creating a deflationary loop. Mining profitability reports show QUBIC yields ~3x higher returns than direct XMR mining (August 14).
What this means:
- High profitability attracts miners, reducing circulating supply as rewards are burned.
- The recent halving (August 20) further tightens emissions, countering inflation from its 125T circulating supply.
What to watch: Burn rate trends and XMR/QUBIC mining profitability spreads.
2. Post-Monero Attack Positioning (Mixed Impact)
Overview: After Qubic’s controversial 51% attack on Monero (August 12-18), its community voted to target Dogecoin next, sparking debates about PoW security and Qubic’s technical capabilities (Decrypt).
What this means:
- Bullish: Demonstrated hashpower dominance raised Qubic’s visibility, with its market cap peaking at $363M post-attack.
- Bearish: Regulatory scrutiny and ethical concerns linger, with Kraken suspending XMR deposits during the attack.
3. Altcoin Season Tailwinds (Bullish Impact)
Overview: The CMC Altcoin Season Index surged to 76 (from 45 in August), signaling capital rotation into smaller caps. QUBIC’s 90-day gain of 33.86% aligns with this trend.
What this means:
- Traders may be accumulating QUBIC as a high-risk/reward play during market-wide risk-on sentiment.
- Low liquidity (turnover 1.67%) amplifies volatility, enabling sharper rebounds on minimal buying pressure.
Conclusion
Qubic’s price action reflects a tug-of-war between strong miner incentives, controversial network attacks, and broader altcoin momentum. While the 24h dip aligns with profit-taking, the halving and mining rewards structure provide fundamental support.
Key watch: Qubic’s progress on its Dogecoin mining plans – a successful pivot could validate its uPoW model, while failure may reignite security concerns.