Market Anticipates Litecoin’s Halving
In less than two weeks, the reward for mining Litecoin (LTC) will decrease from the current 12.5 LTC to 6.25 LTC per block. Currently, Litecoin miners bring in around 7,200 LTC, roughly equivalent to $670,000, in block rewards daily. The reduction of reward, an event known as the halving, is anxiously awaited by the crypto community and is likely to garner significant market attention.
Litecoin Whales Fill their Bags
Over the past 48 hours, substantial investments in Litecoin have been witnessed, with ‘whales’ purchasing over 590,000 LTC, an investment worth about $59 million. This big money inflow comes as the cryptoverse begins to feel the anticipatory tension of the imminent halving.
Litecoin’s Performance and Halvings
Though Litecoin has shown some vulnerability against Bitcoin in the past, it is far from the worst performer among Bitcoin forks. The halving event, which occurs approximately every 840,000 blocks or around four years, is seen as a potential trigger for price instability. As Litecoin nears its third halving, many holders hope that the event will provide the impetus needed to break Litecoin free from its current range bound price action.
Historical Pattern and Speculation
Analyst Benjamin Cowen, who has examined Litecoin’s price history in depth, identifies a troubling pattern surrounding the halving event. Generally, June and July of each halving year see a significant surge in Litecoin’s price, reaching a local peak. This year, Litecoin’s price rocketed to $114.93 per LTC on July 3, aligning with Cowen’s prediction.
Future Outlook
Despite Dogecoin [DOGE] surpassing Litecoin [LTC] in terms of long-term holdings, a large portion of Litecoin supply remains static. According to IntoTheBlock, 13% of the Litecoin (LTC) supply has not been moved in five years suggesting long-term holding is prevalent in the Litecoin community. The current circulating supply of Litecoin is 73,387,727 LTC, around 87.37% of its total supply capped at 84 million LTC coins.
As the Litecoin halving event closes in, the crypto market watches with bated breath. Will this event be the ignition spark for potential price swings or will it underline the current range-bound trajectory? Time will tell. Feel free to comment your thoughts on Litecoin’s imminent halving and its potential impact below.
