Litecoin (LTC) is a cryptocurrency that is based on the Bitcoin protocol but differs in certain aspects such as a shorter block generation time and a different hashing algorithm, has been gaining attention as it approaches its next halving event, scheduled for August 16, 2023.
What is Litecoin – LTC?
Litecoin – LTC is a cryptocurrency, based on an open-source global payment network, not controlled by any bank or central authority. Litecoin is designed for speed and is perceived by investors as ‘digital silver’, whilst Bitcoin is known to be ‘digital gold’.
What is Litecoin – LTC Halving?
Every four years, a block halving event occurs on the Litecoin blockchain, which reduces the block reward. Litecoin’s initial block reward was 50 LTC. The block reward splits every 4 years, which lowers the rate at which Litecoins are generated. During the upcoming halving event, scheduled for August 16, 2023, LTC’s block reward will be reduced from 12.5 LTC to 6.25 LTC. This will cut the rate at which new LTC enters circulation in half, and it is a factor that traders and investors are closely monitoring.”
Historical Halving price action
Before its 2019 halving, LTC reached its peak 7 weeks prior and went up by more than 500% from the bear market bottom. Currently, LTC is up by 163% from its 2022 bottom, and with its halving approaching, many investors are wondering if history will repeat itself.
Next halving Impact
While there is no guarantee that LTC will follow the same pattern as it did in 2019, its halving event is certainly a factor that traders and investors are closely monitoring. This reduction in supply could potentially lead to an increase in demand for LTC, driving up its price.
However, we have to remember that everything in cryptocurrency is speculative, and the momentum of the market is often determined by the actions of whales. The question is whether this presents an opportunity to pump the price and benefit from the halving narrative, or if this news is merely a way to attract traders by mirroring the historical data of its bigger brother, Bitcoin. Only time will tell.
The post Litecoin Halvening Approaching: Will History Repeat Itself appeared first on YourCryptoLibrary.
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