cryptocoin.com As we reported, the third halving event for the popular altcoin Litecoin is officially 100 days away! As the countdown begins for the 3rd halving event, which is followed closely by many experts, experts explained the critical points that investors should know! Here are the details…
The countdown has begun for Litecoin: But what about halving?
As you know, Litecoin (LTC)’s third halving is officially 100 days away and is expected to take place on August 2, 2023, at block 2.520,000. Experts state that the date may change due to the network’s hash rate fluctuations.
Litecoin halving occurs after 840,000 blocks every four years and miners receive 50 percent less coins than before. Litecoin has had two halving events since its launch in 2011, and miners are currently receiving 12.5 LTC as a reward. Litecoin’s mining rewards will be reduced to 6.25 LTC with the upcoming halving event. At the birth of Litecoin, miners were receiving 50 LTC, but after the first halving at block height 840,000 on August 25, 2015, the reward was reduced to 25 LTC. On August 5, 2019, the second halving took place at block height of 1,680,000 and the reward was halved.
Currently, about 576 blocks are mined and 7,200 LTCs are created every day on the Litecoin network. However, after the third halving, daily LTC production will drop to 3,600. As a result, the LTC supply rate will drop, potentially triggering an increase in demand from investors. According to experts, this can positively affect the overall value of assets.
How will Litecoin’s third halving affect LTC?
There has been a lot of speculation about the impact of the halving on Litecoin’s price. While some members of the crypto community believe that the value of the asset will increase after the event, others think that the halving will have no effect as it is already priced.
The optimistic view of Litecoin’s halving is based on historical price trends following Bitcoin’s own halving, which happens every four years. Like Litecoin, Bitcoin halving helps lower the inflation rate and reduces miners’ block rewards by 50 percent. Given the dominance of Bitcoin, halvings have historically caused significant disruptions to the market. After Bitcoin’s halving in 2016 and 2020, the market rallied in the years that followed, resulting in many crypto assets reaching all-time highs.
However, on-chain data shows that Litecoin’s previous halving events have failed to produce the same effects. LTC prices in 2015 and 2019 were mostly unresponsive to the network halving. Before the last halving, Litecoin’s value fell and this decline continued after the event. Therefore, according to experts, it seems unclear in which direction Litecoin’s price will move after the halving.
What is halving?
Halving is a mechanism in which the rewards that crypto miners receive for verifying transactions on a blockchain are halved. This is done to slow the rate at which new units of a digital asset are created, thereby creating scarcity according to the principles of supply and demand and potentially increasing the value of the asset. By reducing the number of cryptocurrencies in circulation, the halving is intended to counter inflation and promote a sustainable and stable growth trajectory for cryptocurrency.
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