Litecoin is no longer as we know it. After a new historic halving event, it's important to expect drastic changes on this popular blockchain.
While Litecoin's halving is a significant event, most analysts have laid down brutal predictions on what to expect from this top altcoin. Buckle up as we navigate the expert opinions of Litecoin lovers and blockchain maestros.
The LTC halving occurred on August 2nd and was successful. However, some analysts and experts have expressed concerns regarding Litecoin's future. Notably, Benjamin Cowen, a top crypto analyst with over 750,000 Twitter followers, advised caution regarding Litecoin post-halving. He highlighted the coin's past halving performance and the current market conditions.
Cowen says Litecoin enthusiasts should calm down and wait till 2025 to enjoy any price increase. "As mentioned a month ago, LTC tends to peak in June/July of its halving year and then fade into the halving. Following the halving, history shows you should temper your expectations on LTC until the post-halving year (2025)," Cowen said.
Cowen further explained that the future of Litecoin looks bleak at the moment. A look at Litecoin's halving history gives users a peak of what to expect from the cryptocurrency. Litecoin is known to go on a rally before its halves. Then once the halving happens, the token is known to witness a massive decline. The only time users and enthusiasts should expect to see any enormous increase from the token should be one year after the halving happens.
Bitcoin isn't also looking good in price. In fact, it might go down to the $28k range with how bloody the charts are.
"BTC is up while altcoins are down. This goes along with the theory that the BTC rally is primarily fueled by the conversion of alts to BTC. Historically, in the pre-halving year, we reach a turning point where alt liquidity is no longer sufficient for BTC to continue the rally," Cowen added.
Litecoin Halving History
On August 2nd, 2023, Litecoin experienced its third halving event on its blockchain. This type of event happens every four years and is unique to proof-of-work blockchains. It's important to note that halving refers to a reduction in the reward given to miners for verifying transactions.
The first block that was mined on the Litecoin ecosystem was in October 2011. At that time, the reward point of the Litecoin ecosystem was 50 LTC. However, the first halving happened in 2015 and reduced the rewards to 25 LTC.
Four years later, the next halving happened in 2019, and it further reduced the rewards from Litecoin mining to only 12.5 LTC. Now the third Litecoin halving has happened, and the current reward threshold is 6.25 LTC. The next LTC halving date is expected to occur in 2027.
Any Significant Effect From the Litecoin Halving?
The Litecoin halving is supposed to slow down the distribution rate of Litecoin's total supply. Litecoin's total supply is pegged at 84 million LTC tokens, and the current circulating supply is more than 73 million.
The recent Litecoin halving has reduced the rewards earned by miners for processing transactions, as well as the amount of Litecoin released to the public. However, this may not all be bad news as investors appear to be ramping up Litecoin as reports show addresses and activity connected to the blockchain are soaring.
The most significant effect this third Litecoin halving will have is that it will reduce mining rewards. Besides that, it is expected that the price of Litecoin will increase due to the halving.
However, Litecoin's halving history isn't mainly characterized by immediate price increases after halving. We might only see some massive surges and subsequent reductions in price. At the time of writing, Litecoin is currently at $86.59, with a price decrease of 2.74% in 24 hours.