Litecoin’s Third Halving: Miners’ Rewards Cut in Half
– Litecoin, one of the oldest blockchain protocols, completed its third halving on August 2.
– The halving event occurs every four years and reduces miners’ awards from 12.5 LTC to 6.25 LTC.
– Halvings are typically seen as catalysts for long-term price increases.
– However, LTC’s value dropped by 6% shortly after the event, currently trading at around $86.80.
– The team behind Litecoin announced the halving on Twitter when the network reached block height 2,520,000.
Background on Litecoin and the Halving
– Created by Charlie Lee in 2011, Litecoin is one of the earliest blockchain protocols.
– It shares many technical similarities with Bitcoin and is often referred to as “digital silver” compared to Bitcoin’s “digital gold.”
– The latest halving reduced the mining reward for Litecoin to 6.25 LTC.
– Litecoin has a fixed supply cap of 84 million coins.
Temporary Price Slump and Potential Sell-the-News Phenomenon
– Despite long-term expectations, the price of Litecoin decreased after the halving.
– Currently trading at approximately $87, it is 6% lower than the previous day and 5% lower than one week ago.
– This drop in price may be a temporary sell-the-news phenomenon.
– It remains to be seen how the halving will impact Litecoin’s price in the coming weeks and months.
Hot Take
The recent halving event for Litecoin did not immediately result in a price increase for the cryptocurrency. While halvings are often anticipated to drive up prices, it is important to remember that market reactions can be unpredictable. The drop in Litecoin’s value may be a temporary phenomenon, and it will be interesting to see how the market responds to the halving in the future.