- Third halving of Litecoin reduces mining rewards to 6.25 LTC.
- Litecoin falls below Polkadot by global crypto market cap.
- LTC’s price equilibrium turns bearish on the daily charts.
The veteran altcoin Litecoin (LTC) had its third halving yesterday, with numerous blockchain enthusiasts counting down the last seconds hoping for a momentous pump. However, LTC’s price movement suggests the halving didn’t bode well with the bulls, as the crypto bears took over what seemed to be a bullish technical setup for many traders.
Unexpected LTC Price Movement Post-Halving
Indeed, the #13 ranked OG altcoin dipped by 5.6% in the last 24 hours, bumping into a monthly low the next day after halving. At press time, Litecoin trades at $85.85, according to CoinGecko. Theoretically, Litecoin’s halving is set to reduce the inflation rate on the blockchain, similar to Bitcoin’s halving.
However, the traders on Crypto Twitter were divided mostly into two camps on how the halving would affect LTC’s price. For instance, experienced crypto traders CryptoBusy pointed out that LTC’s old resistance levels at $85 might act as the new support line, given that $LTC continues to trade between the $85 – $97 price range.
Popular influencer Crypto Tony remarked that LTC halving “did absolutely minimal to help towards the price at the end.” The pro trader also pointed out that there have been plenty of liquidity issues across the crypto markets, and “money is just being shifted between different areas within the crypto space for now.”
On-Chain Data Suggests Improvement from 2019
Forked from Bitcoin, LTC is one of the oldest altcoins in the crypto game. It has shown significant growth since its last halving, a new study by IntoTheBlock reveals. According to on-chain metrics, the total addresses for Litecoin’s network tripled to nearly nine million during the four years, while active addresses doubled from 127K to 255K.
On top of that, the trading volume and daily transactions present a quadruple increase, marking an increased demand over the years. To illustrate, the average number of daily transactions in 2019 was 35,000, while LTC has seen around 141,000 transactions daily in 2023. This worked well to quicken LTC’s hash rate, which went from 404 TH/s to 754 TH/s, putting Litecoin at the top of title contenders for the most used altcoin.
Litecoin’s halving cycle occurs every 840,000 blocks – around four years, and the previous two halvings benefited the blockchain network and its users.
For instance, BitPay CEO Stephen Pair recently mentioned that Litecoin and Bitcoin Lightning had the greatest run of all-time measured by use cases. Moreover, Litecoin is often chosen as an alternative to Bitcoin, as 35% of BitPay users choose $LTC.
This could be because Litecoin has significantly increased its hash rate, implemented the MimbleWimble (MWEB) upgrade last year, and withstood the test of time. While Litecoin is leading on BitPay, the positive outcomes of this recent halving are yet to be unveiled.
On the Flipside
- The OG altcoin has shown resilience throughout extremely volatile market conditions, as seen last year.
- The Terra Luna fiasco in 2022 contributed to traders choosing LTC as a safe, game-tested payment option.
Why This Matters
Halvings are important for Litecoin and Bitcoin, as they decrease block rewards until the entire supply is available in circulation.
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