Litecoin Rallies as Halving Event Draws Closer
Litecoin (LTC), one of the most popular cryptocurrencies, is set to have its once-every-four-years halving event in 2023. Litecoin will be the first top proof-of-work blockchain to have its reward-halving event in this cycle.
The Litecoin halving event, which will take place in about 200 days, will slash the network’s block reward by 50%, cutting it from 12.5 LTC per block to 6.25 LTC. Though they share many on-chain similarities, Litecoin’s Scrypt network algorithm is different from Bitcoin’s SHA-256, giving both halving processes specific nuances.
Given the typical effect halving events have on the host cryptocurrency, LTC could record a steady bullish climb in the run-up to the event and after the event.
Interestingly, upward mobility can be seen in the PoW cryptocurrency as LTC currently sits at a 25.7% increase since the start of the new year.
The halving event, scheduled for early August, will be Litecoin’s third block reward cut since it entered the crypto scene in October 2011. The first halving occurred on August 25, 2015, slashing Litecoin’s block reward from 50 LTC to 25 LTC. Four years later, or 840,000 blocks later as encoded in the network’s system, the second reward halving took place on August 5, 2019. This event reduced the miners’ reward from 25 LTC to 12.5 LTC, which is the reward received by miners today.
What Happens After the Reward Halving?
Two major effects of the event include:
- Price hike: When the number of Litecoin rewarded per block is reduced by 50% and demand for Litecoin remains steady, it could lead to an upward trend in its price.
- A decline in mining profitability: With a decrease in the block reward, miners will earn fewer Litecoin for their efforts. This could result in a reduction in mining profitability if the price does not go up, which could cause some miners to leave the network in search of better options.
Finally, the next three major proof-of-work reward halvings include Bitcoin Cash (449 days from now), Bitcoin SV (454 days from now), and Bitcoin (473 days from now). Meanwhile, Ethereum Classic will record its halving in about 567 days.
LTC Is Getting Closer to $100
Litecoin has tapped into the current trend turnaround in the broader cryptocurrency market. At the time of writing, the 13th-largest cryptocurrency is trading at $88, up by 25.76% from the start of the year. This is also Litecoin’s highest price level since May 2022, as the broader market nears the $1 trillion capitalization mark again.
Though the market is in bullish mode, we could see a slight pullback in the coming days to ease the pressure and accumulate more buyers. Is $100 the next target for Litecoin?
LTC Statistics Data
LTC Current Price: $88
LTC Market Cap: $6.3B
LTC Circulating Supply: 72M
LTC Total Supply: 84M
LTC Market Ranking: #13
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Disclaimer
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.
