Litecoin (LTC) Prepares for Halving Event on August 3
Less than a week remains until Litecoin (LTC) undergoes its halving event, reducing mining rewards by half.
Litecoin (LTC) Prepares for Halving on August 3. Image: Bloomberg
Litecoin's third-ever halving event is set to occur next week on August 3, 2023. Litecoin halving events occur every four years, bringing a significant change by reducing the block reward for miners from 12.5 LTC to 6.25 LTC.
- Read more: What is Halving? Things to Know About Bitcoin and Litecoin Halving
Meanwhile, halving is a term describing a crucial tokenomics mechanism for projects utilizing Proof-of-Work, such as Bitcoin or Litecoin. This mechanism gradually reduces BTC/LTC rewards per block to slow down new coin issuance through mining activities, with the final Bitcoin expected to be mined by 2140 despite the current supply reaching over 19 million coins.
Litecoin is expected to be halved on August 3, 2023, less than a week, with about 3,574 blocks remaining. After the halving, the Litecoin block reward will be reduced from 12.5 LTC to 6.25 LTC. BTC has risen by 78% since the beginning of the year; LTC only rose 30%.…
— Wu Blockchain (@WuBlockchain) July 27, 2023
Overview of LTC Price Fluctuations
LTC is currently priced at $91 USD, and the price action indicates relatively little volatility ahead of the upcoming halving. LTC has seen a 30% increase since the beginning of this year, while BTC has risen by 78%.
1D chart of the LTC/USDT pair on Binance at 02:15 PM on July 28, 2023.
Price Fluctuations of Litecoin During the 2019 Halving
Litecoin experienced its second halving event on August 5, 2019. Prior to the event, Litecoin had temporarily peaked around $146 USD on June 22, 2019, and underwent significant adjustments over the next six months, dropping to as low as $37 USD.
Price fluctuations of LTC before and after the second halving event in 2019.
There have been hypotheses suggesting that Litecoin leads Bitcoin in price action. Many traders have found value in this theory as a guiding principle to determine the next movement trend of Bitcoin in the cryptocurrency market.
Potential Decrease in Miner Participation Post-Halving
According to data from BitInfoCharts, Litecoin's network hashrate currently stands at 755 TH/s, a 2% decrease over the past 24 hours. With miners' profits set to decrease by 50% while mining difficulty remains unchanged, Litecoin's network is likely to witness a decline in miner participation, correlating with a proportional decrease in hashrate.
