Market Response to Litecoin’s Halving Event
Litecoin (LTC) underwent a significant event known as halving – an internal characteristic of the cryptocurrency’s design. The event, which is the third halving in Litecoin’s history since 2011, reduces the reward for miners by half, limiting the release of new tokens. As a digital silver, LTC’s occurrence of the halving process is akin to Bitcoin’s digital gold.
However, unlike the usual expectations of cryptocurrency traders for prices to surge after the halving due to supply constraints, Litecoin, instead, dipped 6% to reach fresh monthly lows post-halving. Past data suggests that the immediate impact of the halving process does not necessarily lead to immediate price surges, contrary to the common investor sentiment.
Litecoin’s Other Developments and Impact on other Cryptocurrencies
Adding to Litecoin’s recent developments are silver cards, potentially carrying an intrinsic value of approximately $40, loaded with 6.25 LTC or about $581. These cards are projected to be sold for around $1,000. Proceeds from this sale initiative would be channeled to the Litecoin Foundation to boost blockchain’s adoption and advancement.
Significantly, Litecoin, dubbed as a “backbone of Dogecoin,” lends network security to Dogecoin through a method called merged mining. Dogecoin has recently been popularized as a topic by Tesla CEO Elon Musk on social media.
Despite the halving event, Litecoin reported significant losses, opposing the usual positive price impact of Bitcoin halving events. Bitcoin’s halving and ETF application decision by BlackRock coming up in the next year may witness turbulence due to Litecoin’s slump, which is one of the prominent cryptocurrencies.
Miners Transition to Other Pools Amid Suspension of Litecoin Mining
The suspension of KuCoin’s Bitcoin and Litecoin mining pools indicated that miners should consider transitioning to alternative mining pools. Presently, the Bitcoin and Litecoin mining pool’s hash rates held by the cryptocurrency exchange, KuCoin, are 9.08 exahashes per second (EH/s) and 3.90 terrahashes per second (TH/s) respectively.
The suspension of these mining pools might provoke a disruption in the cryptocurrency market. Mining plays an invaluable role in the digital asset ecosystem, and KuCoin remains influential in the industry.
Litecoin Halving and Its Impacts
The immediate aftermath of the Litecoin halving event displays a decline in the investors’ participation as reflected in the selloff. This crypto event is characterized by cutting in half the block rewards. Post the latest halving event, the rewards for solving blocks have further reduced to 6.25 LTC. On-chain data revealed that Litecoin traders exhibit signs of capitulating and anticipating high selling pressure. The possibility of a classical “buy the rumor, sell the news” event could potentially foretell Litecoin’s price movement in the market.
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