Less than 100 days left until the third Litecoin Halving
The next Halving of the coin called "digital silver" will probably take place in August 2023.
Less than 100 days remain until the third Litecoin (LTC) Halving. This is a cyclical event inscribed in the mechanism of both this and many other cryptocurrencies. The architecture of this system works on the same principles as in the case of Bitcoin (BTC). After each Halving, the reward for newly mined LTC blocks that miners receive for performing work is halved. There have been relatively many speculations in the digital currency community related to the potential impact of this event on the price of Litecoin itself.
Less than 100 days left until the third Litecoin Halving
The third Halving of the cryptocurrency, which is often called "digital silver" by its supporters, will take place in a few months. According to the latest calculations, which were based on data on the mining of LTC blocks, this event is to take place on August 2 this year. To be precise, this will happen with the extraction of block 2,520. It is worth noting that this date may change due to hashrate fluctuations in the LTC network.
In this case, the mechanism works similarly to the Bitcoin (BTC) network. As part of this cyclical and characteristic event, the rewards received by miners for mining subsequent LTC blocks are divided in half. This solution is primarily intended to slow down the rate at which new coins of this digital currency appear in circulation.
Halving also creates scarcity, and this typically leads to a potential increase in the value of a given digital asset through the operation of the law of supply and demand. The limited amount of cryptocurrency in circulation fulfills a very important function, because it leads to counteracting its inflation. Therefore, it makes the given cryptocurrency more attractive for traders in terms of investment.
Speculation on the impact of Halving on LTC
As in the case of the king of cryptocurrencies, also in the Litecon variant, opinions are divided on how the rate of this digital currency will react after the next Halving. Some crypto market analysts assume that the price of this cryptocurrency will increase, while others claim that this event will not significantly affect its value.
Optimistic forecasts are generally rooted in the historical price trends of the oldest cryptocurrency, Bitcoin. After the BTC Halvings, the market most often experienced price increases. It is worth adding that in the case of Bitcoin, this did not happen immediately after Halving, but after some time.
Importantly, on-chain data related to Litecoin, however, do not show that previous block reward splits have been significantly reflected in the increase in the price of this digital currency. The LTC exchange rate did not react both in 2015 and in 2019. In addition, experienced participants in the cryptocurrency sector remember that before the last Halving, the value of Litecoin fell. This cryptocurrency recorded its ATH at the beginning of December 2021 during a large bull market on the virtual currency market.
