By
Tolu Ajiboye
April 23rd, 2024
The nearest Litecoin halving is set to occur in 69 days when the number of generated Litecoin rewards per block will be halved. Amid the event, experts are predicting a new price rally on the whole crypto market.
Litecoin (LTC), referred to as the digital silver to the digital gold of Bitcoin (BTC), is approaching to a huge event — halving. Amid the event, a significant bull run cycle in the industry is anticipated.
Litecoin is an open source software project released under the MIT/X11 license on October 7, 2011. Technically nearly identical to Bitcoin, Litecoin has some improvements over most major cryptocurrencies, including the adoption of Segregated Witness, and the Lightning Network. These effectively allow a greater amount of transactions to be processed by the network in a given time, reducing potential bottlenecks, as seen with Bitcoin. Litecoin also has almost zero payment cost and facilitates payments approximately four times faster than Bitcoin.
The Litecoin Network aims to process a block every 2.5 minutes. The total supply limit is of 8,400 LTC.
In 2017, Lightning Network of Litecoin was officially launched, which was a milestone event for scaling payments in the long term.
Litecoin Halving: Previous Experience
Halving is an event that usually occurs at regular intervals, roughly once in four years. The nearest Litecoin halving is set to occur in 69 days when the number of generated Litecoin rewards per block will be halved, and the total number of Litecoin mined by miners per block will reduce from 25 to 12.5 LTC.
The event will take place on block #1,680,000. The number of Litecoin found per block will become more scarce and this halving reward ensures that Litecoin total supply will reach 84 million.
The last Litecoin halving took place on August 25, 2015, when the Litecoin reward was reduced from 50 LTC to 25 LTC. A couple of months before the halving, Litecoin surged sharply and reached $8.967, despite the fact that expectations were not as high.
However, after the event, Litecoin price dropped, which also was a surprise taking into consideration the influence of supply and demand on the Litecoin’s price. As the supply was decreased, it was expected that the price would rocket after the halving event.
Such a trend could be explained at that time by a relatively small and not well-developed crypto market, the reduction of block production, and other factors. Now, based on the previous halving experience, it is easier to analyze and predict some price trends that the crypto community will see in the nearest future.
How Litecoin Halving Will Influence the Crypto Industry?
Since 2015, the crypto market has seen a number of bearish and bullish trends, and it is obvious that the Litecoin block generation halving may lead to imbalanced supply and demand and cause a new price rally. Crypto analysts and investors are expecting a rapid growth of Litecoin price, that’s why many are acquiring more Litecoin tokens with the hope to hit the jackpot.
Recently, Litecoin broke over a key resistance level. Its current price is $ 113.84 per coin. Its market capitalization has reached $ 7,05 billion, and some believe that this price rally has already started.
A more accurate prediction can be made by experts later. Now, we may just guess how far the Litecoin price may go and whether the halving will make the prices of other digital currencies higher.