Litecoin Surpasses $100 LTC/USD Again in 2019 as Halving Nears: Can It Sustain This Price Level?
Litecoin (LTC), the 5th largest digital asset in the market, has surpassed $100 for the second time this year. The virtual currency has experienced an impressive price performance this year after Binance Coin (BNB). It has been one of the best performing digital assets among the top 10.
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Litecoin was able to surprise the market once again by surpassing $100 for the second time this year. Earlier in May, the digital currency was able to be traded above $100, but it couldn’t sustain this price level for a long period of time. This is why it will be important to follow how the digital currency is going to behave in the next hours and whether it will be able to remain above that level.
Litecoin is in the market since 2011 and it was able to outperform most of the digital currencies in the market. The digital asset has a clear leader, its founder Charlie Lee, and the Litecoin Foundation that works with experienced developers in order to improve the virtual currency and its features.
One of the reasons behind this price surge could be related to the fact that Litecoin is going to be experienced a halving event as soon as August this year. That means that the rewards for miners are going to be dropping from 25 LTC per block to 12.5 LTC. With a growing or stable demand, the price of this virtual currency is expected to grow. The market could be anticipating this halving and Litecoin users might be storing larger amounts of LTC in case the price grows in the future.
Every 840,000 blocks – exactly four times more the blocks needed for Bitcoin halvings – the new issuance of LTC gets reduced by 50%. In this way, inflation decreases and improves LTC’s presence in the market. That means that each Litecoin becomes more valuable as time passes. Indeed, Litecoin’s current annual inflation is 8.85% and it will be 4.26% per year after the halving event.
The cryptocurrency analyst and trader, Crypto Cactus, explained that Litecoin is going to be traded higher as time passes. This is due to the fact that the halving is getting close and closer.
Wouldn't expect something crazy but likely price will follow speculation and hype as we get closer to 6th august 2019. pic.twitter.com/gt2dZM503u
— Cactus (@TheCryptoCactus) May 22, 2019
At the time of writing this article, Litecoin is being traded above $100. In the last 24 hours, it lost 1.68% and it has a market capitalization of $6.23 billion, according to CoinMarketCap.