Open interest for Litecoin futures derivative contracts has surpassed $420 million universally, representing growth of 22 percent year-to-date.
This surge in demand for LTC futures is the highest observed since the beginning of 2022, reports by data from Coin Glass. Open interest refers to the total value of unsettled trading contracts and can be used to measure trends in interest for a particular asset.
The jump in open interest for LTC futures could be influenced by plenty of factors, including the following halving event for Litecoin, which is frequently referred to as the silver to BTC’s gold.
During the halving event set for Aug. 5, the price of new coin issuance on the network will be halved, and the reduction in new coins could drive up the perceived value of Litecoin owing to increased scarcity.
Litecoin has seen modest profits these 30 days, growing almost 7 percent so far these 30 days from $86 to $92, reports by data from CoinGecko. It’s likewise seen a large surge in its hash price in the previous year, adding another favorable metric to the asset’s profile.
Hash price is a measure of the processing power dedicated to Litecoin’s blockchain tech, and it’s increased 45 percent in the previous year to reach 730 TH/s, reports by data from BitInfoCharts. This surge signifies a heightened level of interest from proof-of-work miners, who play a critical role in ensuring the security of the network and validating transactions.