The next Litecoin halving, which is scheduled for August 2, 2023, at block 2,520,000, is now 100 days away. However, because of variations in the network’s hash rate, the date is liable to vary.
In 100 days, Litecoin halving is set to occur
The incentives crypto miners earn for confirming transactions on the blockchain are reduced by half using a method known as halving. This is done to slow the rate at which new units of a digital asset are produced, generating scarcity and perhaps raising the asset’s value by supply and demand principles.
The halving seeks to prevent inflation and provide a sustainable and steady development trajectory for the cryptocurrency by lowering the number of coins in circulation.
After block 840 000, Litecoin is halved every four years, with miners earning 50% fewer coins than previously. Since the blockchain’s 2011 inception, its size has been halved twice, with miners now earning 12.5 LTC.
With the impending halving event, the mining reward for blocks in Litecoin will be lowered to 6.25 LTC. The reward for miners was 50 LTC at the time of Litecoin’s creation, however, it was halved for the first time on August 25, 2015, at a block height of 840,000. The prize was further cut in half on August 5, 2019, when the block height reached 1,680,000.
Litecoin’s network now produces 7,200 LTC per day by mining 576 blocks on average. Nevertheless, after the third halving, the daily LTC output will fall to 3,600. As a result, there will be less LTC on the market, which might lead to an increase in investor demand. On the property’s general worth, this may be advantageous.
Will the price of Litecoin (LTC) increase?
Regarding how the halving event would affect the price of Litecoin, there is a lot of discussion. While some members of the cryptocurrency community think the asset will appreciate following the event, others think the price halving won’t matter because it’s already fixed.
The price movement of Bitcoin historically, which halves every four years, is the foundation for the positive stance on the Litecoin halving event. Similar to Litecoin, the Bitcoin halving slows down inflation and cuts the block rewards for miners by half.
A considerable market disruption has traditionally resulted after bitcoin price halvings due to its ubiquity. In the years after bitcoin’s halves in 2016 and 2020, the market rallied, causing many crypto assets to hit new all-time highs.
The likelihood that the price of LTC will start to increase as the Litecoin halving event draws nearer is based on previous trends. However, other elements including the state of the market, investor attitude, rivalry, and legislative changes might also have an impact on the asset’s price. As a result, it’s crucial to take into account a variety of factors that might affect the price of Litecoin.
On-chain data, however, indicates that other Litecoin halving occurrences failed to have a comparable impact. The network halving has no effect on the LTC price between 2015 and 2019. The value of Litecoin decreased before the most recent halving and kept going down after it. As a result, it is unclear which way the price of Litecoin will move following the halving.