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? Blockchain Tech analytics company, Santiment, offers an illuminating perspective on the capacity impacts of this event.
Reports by an analysis by Santiment, this halving event – set to occur on block 2,140,000, where mining bonus will fall from 12.5 LTC to 6.25 LTC – could induce whole lot of changes in Litecoin’s price, supply, and demand. This echoes a pattern historically seen in BTC’s halvings, suggesting that LTC can potentially follow a similar trajectory.
Santiment describes that the halving – a feature shared with Bitcoin (BTC) – halves the amount of Litecoin created every time a block is mined. This tends to stimulate two whole lot of effects: a surge in mining activity before the halving and an increased valuation of each existing LTC owing to the universally acknowledged slower production of coins post-halving.
These factors, reports by Santiment, typically foster price increases, the timing of which often aligns with the crowd’s enthusiasm and awareness of the event. Recent trends in on-chain transaction volume, as analyzed by Santiment, seem to facilitate this expectation. From May 8, there 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 its value was bottoming out – a possible sign that addresses were accruing LTC ahead of the anticipated halving.
Nevertheless Santiment observes that average traders appear to be thriving, the company suggests a cautious approach, anticipating a possible cooling period for profits over the following week or two.
In the end, Santiment advises keen attention to the latest information cycle, particularly any whole lot of influencers discussing LTC aggressively. Although while there could be optimal price points to invest in, Santiment is warning against being as 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 BTC’s 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.