AddWith the Ethereum Shanghai upgrade being successfully launched, the crypto community has a new event to look forward to; as it takes an approximate of 4 years to take place. Yes, we are talking about Litecoin Halving! The hard forked blockchain of Bitcoin has its third halving event happening in 100 days.
The halving event is expected to take place on August 2, 2023, at block 2,520,000. However, the expected date may change, depending on the hash rate fluctuations happening on the Litecoin network. So what exactly is ‘halving’ in crypto? In the crypto space, the term “halving” refers to the programmed reduction of the amount of new coins that are issued to miners as a reward for validating transactions on the network. This reduction happens at predetermined intervals and is meant to control the supply of the crypto tokens in question. The intend of halving is to counteract the possibility of inflation while encouraging a sustainable and stable growth trajectory for the crypto assets.
Know more about Litecoin Halving 2023
100 Days till the Litecoin Halving!
— Litecoin (@litecoin) April 24, 2023
Effects of Halving on the Litecoin Network
In the context of Litecoin mining, the halving event signifies that the amount of Litecoin that miners receive for adding a new block to the blockchain is cut in half. This reduction in mining rewards is designed to limit the total supply of Litecoin in the market and help in maintaining the value of LTC over time. This halving event for LTC occurs every four years when it reaches 840,000 blocks, with miners receiving 50% fewer coins than before. Since its inception in 2011, the Litecoin blockchain has undergone two halving events.
The first Litecoin halving took place in August 2015, when the mining reward dipped from 50 Litecoin per block to 25 Litecoin per block. The second Litecoin halving event took place in August 2019, which reduced the mining reward to its current 12.5 Litecoin per block. The next Litecoin halving is expected to take place in August 2023, at which point the mining reward will further reduce to 6.25 Litecoin per block.
At present, there are about 576 blocks which are mined daily on the Litecoin network, resulting in the creation of 7,200 LTC. Interestingly, after this third halving event, the daily LTC production will get reduced to 3,600. As a result, this will cause the supply rate of LTC to dip which might potentially trigger a surge in demand for the token from investors. The change in the demand and supply equation may have a positive impact on the overall value of the asset.
Additional read: Litecoin Price Prediction
Will Litecoin’s Third Halving Affect LTC?
The crypto halving events has a history of affecting the values that the assets drive. So, there have been speculations in the crypto space about the price of LTC and how the halving might affect it. A report from CryptoPotato stated that while some investors of the crypto community are siding with the opinion that the asset’s value might increase after the event, there are others who think that the halving might not have any impact on the token as it has been already priced in.
However, this notion about the LTC price has stemmed from the history of BTC prices and its having events; which also takes place every four years. Taking into consideration the dominance BTC has on the crypto space, the having events of 2016 and 2020 not only resulted in increasing the price of BTC but also pulled a lot of altcoins to reach their all time highs.
After the previous halvings, as per the on-chain data, Litecoin have not been able to to produce the same effects. The LTC prices back in 2015 and 2019 were almost unresponsive to the network’s halving.
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Source: CryptoPotato
