If history repeats itself, LTC price could begin to gain with Litecoin halving which is only about 100 days away.
As Litecoin approaches its next halving event, there are indications that the coin’s price may surge again. Chinese blockchain explorer OKlink predicts that the next Litecoin halving will happen by August 3, 2023.
A halving event is a programmed change in the supply rate of new coins in a cryptocurrency’s blockchain. For Bitcoin and Litecoin, their halving cycles happen every four years. The implication is that the block reward for mining new blocks on the Litecoin blockchain will reduce from 12.5 LTC to 6.25 LTC. This will cut the number of new coins in half, create scarcity and drive up LTC’s price.
Historically, Litecoin halvings have always seen a surge in LTC price. In the run-up to its last halving event in 2019, Litecoin surged by about 375%. LTC price reached a peak of $143 by June 2019, despite the brutal bear market of 2018. Similarly, in 2015, LTC price surged by 440% in the lead-up to the halving event.
Will LTC Price Pump?
If history repeats itself, LTC price could begin to gain with Litecoin halving which is only about 100 days away. However, several other factors could come into play and affect the price of the asset. These include overall market conditions, investor sentiment, competition, and regulatory developments.
For example, the asset exploded with the rest of the market in November 2020 and shot up to its all-time high of $410 in May 2021. Thereafter, it also retraced as the broader crypto market hit a snag later in the year. Again, adverse crypto regulation could dampen investors’ enthusiasm and reduce price gains.
Meanwhile, with the number of altcoins being launched in the market daily, Litecoin is facing more competition than ever before. This may also limit investments in the asset as investors seek to hedge their investments and invest in multiple assets. Overall, these factors may also affect the price of the asset despite the halving event in 100 days.
Whatever the case, analysts believe Litecoin has a promising future, owing to its strong development team, fast transaction speed, and scalability. Consequently, they expect more mainstream adoption and use cases in the future which will continue to affect its price.
At the time of writing, LTC was trading at $87.28, according to CoinMarketCap.