Litecoin Prepares for Block Subsidy Halving
In under two weeks, Litecoin (LTC) – one of the major players in the cryptocurrency landscape – is preparing for a significant event: the halving of the block subsidy. Currently, Litecoin miners are credited with 12.5 LTC per block, a figure that will soon decrease to 6.25 LTC.
The upcoming halving correlates with an increase in activity among ‘Litecoin whales’, holders of substantial amounts of LTC. Over the last 48 hours, these whales have purchased more than 590,000 LTC, equating to a substantial financial investment of approximately $59 million.
A Calculated Investment Strategy Ahead Of Halving?
The high-intensity buying activity suggests an unwavering faith among LTC whales in Litecoin’s future performance, particularly as the halving event approaches. With miners currently reaping 7,200 LTC (circa $670,000) in block rewards daily, the halving may significantly affect the mining incentive, making it a critical time for the cryptocurrency.
New information reveals ongoing intense activity among these whales, evidenced by the rise in transactions exceeding $100,000 on monitoring platform, Santiment. The data shows a significant uptick in transactions, ranging between 100 and 200 on a daily basis over recent weeks, pointing to a sharp increase in LTC acquisition.
The Impact of Halving on Litecoin’s Market Position
Despite the surge in buying activity, Litecoin’s market presence does not seem much affected. At press time, LTC’s social dominance stood at 44, a less than impressive number considering the buzz that the imminent halving event has generated.
Perhaps surprisingly, Dogecoin [DOGE], another cryptocurrency, has managed to surpass Litecoin in terms of long-term holding. Despite being a two-year younger entrant into the market, data suggests a stronger conviction in DOGE’s long-term price action among investors compared to LTC.
With the third halving event scheduled for August 2nd and Litecoin trading at $92.89 at the time of writing, it’s growing more interesting to note how the event will affect Litecoin’s performance and whether the flurry of recent whale activity will yield a positive outcome.
What are your thoughts on the impending ‘halving’? Do you think Litecoin is poised for significant growth? Let us know your thoughts in the comments below.
