Litecoin Hash Rate Drops Over 21% Since Reward Halving
- Litecoin hash rate drops 31.3% from its ATH
- LTC price lost 24.5% of value since halving
- Litecoin’s lack of Github Activity and developers
On August 5, Litecoin experienced its second reward halving that cut down its miners’ reward in half from 25 coins per block to 12.5 LTC per block.
Before the halving that occurs every 840,000 blocks and roughly every four years, the hash rate of Litecoin network climbed to it's all-time high at 523.8 Th/s on July 14.
Just before the event, Charlie Lee, the founder of the fifth largest cryptocurrency by market cap reflected on the implications of the event during an interview, where he said, “It’s always kind of a shock to the system.”
“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine,” explained Lee. “If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine,” he added.
Litecoin Hash Rate Drops 31.3% From Its ATH
That day after the successful halving, Litecoin network didn’t see much change as Lee tweeted,
Since the halving, 12 blocks have been found in 17 minutes.
Seems like miners have not shut off their hashrate at all. Instead, we are mining at a rate of a block every 1.4 minutes on average, which is much faster than the expected 2.5 minutes.
Litecoin network is healthy! pic.twitter.com/xvgefqIPtP
— Charlie Lee [LTC⚡] (@SatoshiLite) August 5, 2019
However, now we have started to see the effects.
Litecoin had its first difficulty change since the halving at block 1681344, resulting in a drop of 4.4% in difficulty/hashrate, Lee said.
The average mining difficulty, from its peak of 16.5M on July 15 has fallen to 15.2M, as per Bitinfocharts.
The hash rate of the rate, meanwhile, has dropped 31.3% since its all-time high and 21.6% since the halving event.
On August 5th, Litecoin hash rate has been at 458.3 Th/s which has slid down to 359.8 Th/s, recorded on August 9.
LTC Price Lost 24.5% of Value Since Halving
Litecoin price meanwhile is currently down 2.98% at $83.70, up 174.5% YTD.
On the day of halving, LTC/USD crossed the $100 mark to reach $107 level. Since then, LTC price dropped to $80.70 — today’s lowest level— registering a loss of 24.5%.
However, it has been no surprise as Lee said,
“In terms of the price, the halvening should be priced in because everyone knows about it since the beginning.”
Moreover, the last halving LTC price moved through similar motions.
Litecoin’s Lack Of Github Activity
In another set of events, a crypto enthusiast pointed towards the digital asset’s Github activity, or its lack of, on Twitter.
Litecoin has grand total of 10 github commits since January 2019 with literally 4 barely on & off part time pleb developers. Charlie personally told LTC bagholders to donate to hire moar developers or LTC fade away & raised whopping 0.50 Litecoin. 😂You can’t make this stuff up! pic.twitter.com/gKNxhmcvoD
— DoItPAHMPIT (@CryptoPahmp) August 10, 2019
As per Github, there are currently 13 commits shown in this year.
A report from March by Electric Capital revealed that a number of projects including Litecoin have been abandoned by developers.
Litecoin’s developer' count actually fell from 40 monthly to 3 developers in the last year, the report read.