According to the Litecoin Foundation, the non-profit organization that develops the Litecoin protocol, there is only 1 day left until the next halving of the network.
Litecoin Foundation estimates that the new Litecoin halving will occur tomorrow Wednesday, August 2, 2023. As with the Bitcoin blockchain, the block reward received by Litecoin miners will be halved.
The halving is an event that occurs every four years, like in Bitcoin, and that reduces by half the amount of new litecoins that are created every 2,5 minutes on the blockchain. In this way, Block reward will increase from 12,5 LTC to 6,25 LTCThe halving slows down the issuance of new LTC and reduces its supply on the market, which could have a positive impact on the price of the cryptocurrency.
The long-awaited Litecoin halving event is about to arrive
In the past few months leading up to the halving, Litecoin has seen some interesting development. The network and cryptocurrency created as a variation of the Bitcoin code to serve as a payment network has reached several important milestones. One of them has been the number of transactions processed in the past 30 weeks.
According to the Litecoin Foundation, The blockchain network has processed a total of 33 million transactions since the beginning of this year.
On the other hand, the number of LTC holders, who hold between $9.500 and $950.000 worth of LTC, has increased significantly. Santiment, a market intelligence platform that provides data on cryptocurrencies, highlighted that Investors have been aggressively accumulating LTC in the months leading up to the halving.
The number of new addresses being created on the Litecoin network also marked an important milestone last May.
According to Glassnode, Litecoin has surpassed Bitcoin, the largest blockchain on the market, in terms of the number of new addresses on the network. The platform highlighted that the activity that Bitcoin experienced with the rise of ordinals pushed users to the Litecoin network, in search of greater speed and lower fees to process their transactions. However, it is also likely that the substantial growth that Litecoin was experiencing in its activity levels was driven by the proximity of the halving event.
On the other hand, despite the chaotic conditions of the crypto market in 2022, Litecoin price has recovered strongly. LTC is currently trading around $104 per token, which is a 100% increase from the cryptocurrency's lowest price in the past year of $46 per token, seen in June 2022.
Repercussions of the halving on Litecoin
Halving is an event that directly affects blockchain miners, who are responsible for validating transactions and ensuring the correct functionality of the network. By reducing the rewards given to miners for each block generated on the blockchain, halving can influence mining profitability and competitiveness.
On the other hand, this block reward halving event may have an impact on the price of the LTC cryptocurrency, since by decreasing the supply of new litecoins on the market, greater demand may be generated if the interest of investors and traders remains or increases.
Over the past 24 hours, LTC trading volume has increased by 18%, while the cryptocurrency reflects a weekly gain of 4,1%, according to data from CoinMarketCap.
When will the Bitcoin and Bitcoin Cash halving take place?
The Bitcoin network halving event is scheduled to occur approximately every 4 years. According to data from block explorer OKLink, there are about 270 days left until the next Bitcoin halving.
This event is estimated to take place on April 26, 2024, reducing the current Bitcoin block reward from 6,25 BTC to 3.125 BTC.
Another upcoming halving event is Bitcoin Cash. The block explorer indicates that Bitcoin Cash's halving will occur on April 5, 2024, about 22 days before Bitcoin's.
Continue reading: Litecoin hits new records amid Bitcoin network congestion
