Even though Bitcoin’s next block reward halving is still almost a year away, Litecoin miners are already preparing for the effects.
The block subsidy for Litecoin will decrease from 12.5 LTC to 6.25 LTC per block in less than two weeks. Litecoin, with a market cap of about $6.8 billion, is still the 12th-largest cryptocurrency despite having its share of controversy.
Currently, Litecoin’s miners earn 7,200 LTC each day in block rewards, which is almost $670,000 in U.S. dollars.
Major investors appear to be looking for an easy trade as the halving approaches, according to popular trader Mikybull Crypto and others, who have observed “whales” buying up about $60 million worth of LTC over the past two days.
Compared to the largest cryptocurrency, Litecoin is trading close to all-time lows, a pattern that has continued over time despite prior halvings.
LTC/BTC is trading at 0.0031, reaching a record low of 0.0017 in June 2022. In contrast, 1 LTC was previously worth 0.052 BTC, or $1,560 in today’s money.
Regarding weakness against Bitcoin, Litecoin is far from the worst performer.
A popular comparison through the years has been forks of Bitcoin versus BTC itself, and the results continue to paint a grim picture of the reality of going against the market’s network of choice.
Bitcoin Cash saw all-time lows in BTC last month and despite a bounce since, remains at just 0.00817 BTC — 98% below its all-time highs of 0.432 BTC.
However, given that LTC’s support level has declined during the previous week, it may fall a little further in the near future.
Because of this, investors shouldn’t be shocked if the altcoin dips below $90 in the near future; this may be necessary for it to start fresh rallies.
However, given that Litecoin’s halving event is anticipated to occur in the first week of August, rallies are probably overdue.
Similar to Bitcoin’s halvings, Litecoin’s will cause its block reward to drop by 50%, theoretically making LTC more rare and “harder” to mine.
As a result, there may be an increase in demand for alternative currency in the coming weeks. However, there is always a chance that the halving will be a case of “buy the rumor, sell the news,” in which case LTC may decline when it is finished.
However, it is still likely that the cryptocurrency will increase in value in the days before the halving, maybe climbing back up to $100 or $110 in the coming few weeks.
Although Ripple’s triumph has diminished investor interest in Bitcoin forks like Litecoin (as well as Bitcoin Cash and Bitcoin SV), LTC may eventually rise to $200 by 2024.
A few days ago, Litecoin surpassed a significant historical milestone regarding its network transactions. An exciting Twitter notification states that the Litecoin network has just completed processing its 170 millionth transaction.
This demonstrates Litecoin’s quickening expansion, which has seen over 10 million new transactions in the previous seven weeks. According to this, there must be over a million weekly transactions.
This is significant since Litecoin has had nearly 11 years of uninterrupted uptime and has never experienced downtime. Litecoin, often referred to as the “Digital Silver” to Bitcoin’s “Digital Gold,” claims to be the only blockchain with over 11 years of uninterrupted uptime.
At the time of writing, LTC had increased slightly over the previous day to $92.97. Litecoin is now ranked 12th among all cryptocurrencies, with a market value of $6.84 billion.