Having led positive trends in the cryptoeconomy year-to-date, Litecoin again took center stage on Monday, with the cryptocurrency—originally a derivative of Bitcoin—achieving a double-digit percent hike, marking the day's most prominent rally among leading digital coins.
Notably, on June 10th, the price of Litecoin soared by about 11 percent, reaching a daily peak beyond $128 USD before stabilizing just above $125. This follows the momentum LTC has been building. gaining around 10 percent , from $109 to $120, last Friday.
The pricing still remains a considerable distance from its December 2017 all-time high of $375, yet the digital coin's recent performances latest spike are pushing it further into the positive territory when viewed through recent lenses: the cryptocurrency has surged 49 percent over the past month, 128 percent over the last quarter, and 14 percent year-to-date.
Litecoin's Monday uptick advanced the digital asset to the forefront of market’s top projects the day's trading activities. Last week, after briefly falling below $7,500, Bitcoin (BTC) rebounded nearly four percent, hitting $7,930. Ether (ETH) appreciated six percent, reaching $244, while XRP saw a five percent rise to $0.396.
Litecoin's current market valuation stands at $7.8 billion, positioning it as the fourth most valuable cryptocurrency in the digital finance space. This capitalization surpasses that of Bitcoin Cash, which is currently valued at $6.96 billion and ranks fifth.
The upward momentum comes on the back of Litecoin's price doubling in the first quarter of 2019. This unprecedented growth marked the digital currency's most successful quarter yet. Since the start of January, when Litecoin was valued at just $30, its value has now quadrupled.
Accordingly, some analysts are pointing to Litecoin's recent performance as a bullish sign for the broader cryptocurrency market. Others suggest that the anticipated 'halvening' event for Litecoin is a significant factor driving the buying pressure at present.
What Makes Litecoin's Halvening So Significant?
In the early days of August, a notable event—the Litecoin blockchain's 'halvening'—will occur, reducing the mining rewards from 25 LTC to 12.5 LTC.
This 'halvening' takes place every four years, reminiscent of Litecoin's origins as an offshoot of Bitcoin. Prior to the last 'halvening' in 2015, which saw rewards slashed from 50 LTC to 25 LTC, the LTC price surged markedly. remnant of the Bitcoin codebase How is the halvening connected to the price? It's all about scarcity, or at least the perceived scarcity, in simple terms.
A major draw for investing in cryptocurrencies such as Bitcoin and Litecoin is that they are deflationary assets, meaning their availability is capped. There will never be more than 21 million BTC, and the maximum that will be mined for LTC is 84 million.
As these currencies become increasingly scarce, some investors expect that demand (and therefore prices) will rise with the reduction in supply.
So in the context of halvings, bitcoin and litecoin Opinions on this theory are divided, but regardless, many in the crypto community are keeping a close eye on Litecoin as its 'halvening' on August 8, 2019, will precede Bitcoin's own reward reduction event in May 2020 by several months.
It's seen as a fitting position for Litecoin, celebrated lately as a sort of 'complementary' network to Bitcoin—comparable yet distinct enough to serve as a proving ground for the more extensive and popular blockchain.
While the 'halvening' is not intended as a test, many will observe it for possible implications on how Bitcoin's own 'halvening' might unfold next year. If LTC continues its upward trajectory ahead of August, it could strengthen the belief that Bitcoin might experience a similar trend.
No matter the outcome, miners are set to face the most noticeable impact, as their Litecoin rewards will soon be smaller than ever before. However, Litecoin's founder, Charlie Lee, remains optimistic that mining will still be lucrative for most LTC miners after the event.
Here are some numbers about mining profitability. Even after the reward reduction, miners remain in the green if electricity stays under 10¢ per kWh. Many are actually paying around 5¢, which suggests they will likely sustain their mining operations post-halvening.
Litecoin block halving is in 56 days! https://t.co/EBWbsIUp47
Meet William M. Peaster, a seasoned writer and editor focused on Ethereum, Dai, and Bitcoin narratives within the cryptoecosystem. His work is featured in Blockonomi, Binance Academy, Bitsonline, and more. He's passionate about exploring smart contracts, DAOs, dApps, and the Lightning Network while he's also diving into learning Solidity. Reach out to him on Telegram at @wmpeaster. https://t.co/AcQPEjdNtb ) pic.twitter.com/VtA9aAv7FS
— Charlie Lee Ⓜ️����️ (@SatoshiLite) June 10, 2019
