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- Litecoin’s hash rate jumped to ATH less than 34 days to the third halving event, which has been identified as a bullish catalyst.
- The value of Litecoin (LTC) has increased approximately 8 percent YTD to trade around $85 on Thursday.
The Litecoin (LTC) network is heating up in preparation for the third halving event, which has been studied to be a bullish trigger. As a derivative for the top digital asset, Bitcoin, Litecoin is highly favored by investors seeking to mine and speculate on its price action.
With the fact that Litecoin price has a valuation of less than $100 and a total supply of about 84 million coins, it is safe to bet that the altcoin has more upside movements in the future crypto bull rallies. Moreover, the Litecoin network is highly decentralized despite the Litecoin Foundation taking the initiative to constantly develop the underlying blockchain to compete with other layer 1 chains.
According to the latest Litecoin on-chain data, the LTC network has about 9.575 million holders who have facilitated more than 167 million transactions since inception.
Litecoin Miners Scramble for Cheap Coins
As the third largest Proof-of-Work (PoW) secured blockchain after Bitcoin and Dogecoin, Litecoin enjoys a vibrant community of global miners. With about 11 million units of Litecoin left to mine, the miners have been upscaling their rigs to fetch as much LTC as possible before the August halving. Notably, the current Litecoin block reward is about 12.5 coins and will decrease to 6.25 coins per block post-halving.
As more Litecoin miners scramble for more readily available coins, the mining difficulty has risen to an ATH of around 26.38 m.
According to the Litecoin Foundation, the LTC total hash rate, which represents the figure of miners’ power, has increased to ATH of about 957.22 TH/s. Notably, an increase in Litecoin miners is directly related to the underlying state of security since they ensure transaction confirmations and protect from 51 percent network attack for a reward.
Litecoin's Hashrate just hit an All Time High today of
⚡️ 957.22 TH/s!! ⚡️
A direct illustration of the steady, healthy, & maturing growth of the $LTC network and Litecoin's network security! #Litecoin⚡ pic.twitter.com/WpGkihs9Hl
— Litecoin Foundation ⚡️ (@LTCFoundation) June 27, 2023
With less than 32 days left for the third halving for the Litecoin network, it is worth noting that total active addresses have been declining in the past few weeks to about 60k on Thursday. Nonetheless, a decline in active addresses does not necessarily imply a bearish outlook as traders could be holding the underlying asset in anticipation of a near future bull market.
Price Action
As one of the oldest crypto assets that still supports the PoW consensus mechanism, Litecoin price is heavily speculated and traded in the derivatives market. With an increased Litecoin demand and reduced miners’ sell pressure, LTC price is likely to rally during the halving event.
Moreover, historical data has shown that Litecoin price experienced heightened volatility pre and post-halving events.
However, it is worth noting that Litecoin’s price has been bleeding against Bitcoin and Ethereum pairs in the past year. The likelihood of such a trend continuing in the coming weeks stands despite positive fundamentals. Furthermore, Bitcoin and Ethereum dominance has been increasing in the recent past, suggesting ominous signs for the altcoin market.
