Litecoin Registers Largest Monthly Gains Since 2017 as Scheduled August LTC Halving Nears
As many of our readers are probably already aware of, the Litecoin (LTC) blockchain is all set to undergo a “halving event” this coming August. The process is carried out every time a set of 840,000 blocks are mined from within the currency’s native ecosystem — an event that roughly occurs once every 48 months. The point of this entire ordeal is to control the altcoin’s inflation rate by adjusting its associated mining rewards.
From a technical standpoint, we can see that since the start of the year, LTC has been able to score decent gains— with the currency surging by 3.8, 46.3, 31.15 and 22 percent across January, February, March and April, respectively.
A Closer Look at the Matter
As mentioned earlier, with the completion of LTCs upcoming halving event in August, miners will now be able to earn 50% fewer coins than what they did previously. Since this can cause a disruption in the currency’s supply-demand cycle, many experts believe that the altcoin’s ongoing surge can be somewhat attributed to this upcoming event.
Also, we can see that historically the price of Litecoin LTC -1.67 has always rallied sharply during the months leading up to a halving event — the first of which took place 4 years back on the 25th of August, 2015.
During the aforementioned time period, LTC “bottomed out” around the $1.12 mark before surging to a relative high of $8.72 (which was just a month before the halving event). Similarly, this time around the currency has bottomed out near the $22 mark — a price point that showcases a value surge of 250% since August 2015.
Other Pointers Worth Noting
- Many crypto analysts believe that as the currency’s “halving” date draws closer, more and more buyers will start to enter the LTC trade market.
- Historically speaking, during LTCs first halving, a number of investors began to invest in the top-10 altcoin just a month prior to the reward halving. However, during the month of the halving itself, Litecoin’s price dropped by nearly 40% — which points to the fact that a number of investors sort of lost interest in the asset after the much hyped event had concluded.
In closing out this piece it should be pointed out that following LTCs previous halving cycle, the premier asset’s price remained sideways for “nearly two years” before surging to a new all-time high in 2017. It now remains to be seen what the future has in store for the digital currency from here on out.