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Litecoin’s blockchain will cut the per-block reward to 6.25 LTC from 12.5 LTC.
- Later Wednesday, Litecoin’s blockchain will cut per block reward to 6.25 LTC from 12.5 LTC.
- Litecoin’s native token LTC was little-changed to negative for months following the previous two halvings.
The Litecoin Network, established in 2011 through a fork of Bitcoin, is scheduled to undergo its third mining-reward halving later today. This means the supply of its own digital currency, LTC, will grow more slowly from now on.
Halving is a process in crypto networks like Litecoin and Bitcoin, where the reward for miners verifying transactions is reduced by 50%. This happens approximately every four years. Some traders expect Litecoin (LTC) to rise in value after the halving due to reduced supply, but past data indicates that it may not always be the case.
On Wednesday, there will be a change in the Litecoin network that will decrease the reward for miners from 12.5 LTC to 6.25 LTC per block. This event is expected to occur around 15:11 GMT (11:11 am ET), as reported by litecoinblockhalf.com. In the past, similar halvings occurred on Aug. 5, 2019, and Aug. 25, 2015. Litecoin’s founder, Charlie Lee, believes that these halvings, which reduce inflation, play a vital role in achieving widespread adoption without compromising the network’s security.
However, litecoin’s response to the previous two occurrences was anything but bullish.
After the halving event in August 2015, Litecoin’s price remained within the range of $2.8 to $3.6 for about 19 months. Then, a remarkable breakout coincided with the Bitcoin rally, resulting in Litecoin’s prices soaring to as high as $370 by December 2017. Similarly, a somewhat comparable pattern emerged following the August 2019 halving.
Perhaps traders priced in the halvings in advance, as evident from the pre-event rallies, and then took profits before sitting on the fence for months awaiting a bitcoin bull run.
LTC didn’t show much excitement during this significant event because both times, Bitcoin, the most influential cryptocurrency, was recovering from tough times. Typically, crypto markets become more positive a few months after Bitcoin’s reward halvings, which happen about 8-9 months after Litecoin’s halvings. Bitcoin’s next halving is expected to occur in March/April 2024.
Currently, LTC is being traded at $90.29, showing a 28.8% gain year-to-date. The cryptocurrency experienced a rally in the first half of the year, similar to the price gains observed before previous halving events.
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