In a pivotal moment for the cryptocurrency landscape, Litecoin (LTC) is gearing up for its LTC20 halving event, slated for August 10, 2023. The cryptocurrency community is buzzing with speculation: could this be the turning point that shapes the future trajectory of LTC? Blockchainย Tech analytics company, Santiment, offers an illuminating perspective on theย capacity impacts of this event.
Reportsย by an analysis by Santiment, this halving event โ set to occur on block 2,140,000, where mining bonus will fall from 12.5 LTC to 6.25 LTC โ could induce wholeย lotย of changes in Litecoinโs price, supply, and demand. This echoes a pattern historically seen in BTCโs halvings, suggesting that LTC canย potentially follow a similar trajectory.
Santiment describes that the halving โ a feature shared with Bitcoinย (BTC) โ halves the amount of Litecoin created everyย time a block is mined. This tends to stimulate two wholeย lotย of effects: a surge in mining activity before the halving and an increased valuation of each existing LTC owingย to the universally acknowledged slower production of coins post-halving.
These factors, reportsย by Santiment, typically foster price increases, the timing of which often aligns with the crowdโs enthusiasm and awareness of the event. Recent trends in on-chain transaction volume, as analyzed by Santiment, seem toย facilitate this expectation. From May 8, thereย is been a steady boost in volume, a strong indication of increased financing activity in LTC, likely in anticipation of the halving.
Interestingly, Santiment likewise notes a sharp uptick in the number of unique addresses interacting on the Litecoin network, reaching a one-year high just as itsย value was bottoming out โ a possible sign that addresses were accruing LTC ahead of the anticipated halving.
Nevertheless Santiment observes that average traders appearย to be thriving, the company suggests a cautious approach, anticipating a possible cooling period for profits over theย following week or two.
Inย theย end, Santiment advises keen attention to theย latestย information cycle, particularly any wholeย lotย of influencers discussing LTC aggressively. Althoughย while there couldย be optimal price points to invest in, Santiment isย warning against being asย well precise, which could result in missed opportunities. They conclude by recommending a strategy of dollar-cost averaging into an investment believed to boost, be it LTC in this halving event or BTCโs next year.
As CryptoGlobe informed yesterday, Litecoin futures derivative contracts have seen an open interest exceeding $420 Million, marking an impressive 22 percent growth since the beginning of the year.
