Litecoin ($LTC) futures derivative contracts have seen an open interest exceeding $420 Million, marking an impressive 22 percent growth since the beginning of the year. Growing appetite for Litecoin couldย be influenced by plentyย of factors.
Reportsย by data from Coin Glass, 1st informed by The Block, open interest in Litecoin futures has grown to the highest level seen since the beginning of aย yearย ago. Open interest refers to the number of outstanding derivatives contracts
A multitude of factors canย potentially have fueled this burgeoning open interest in Litecoin futures, including theย pastย few surge of cryptoย tokens being minted on the network after BTCโs network started suffering from a flurry of activity over BRC-20 cryptoย tokens being minted. A notable driving force is the impending halving event scheduled for August 5, where Litecoinโs new coin issuance price will be slashed by 50%.
The Litecoin block reward for miners will be slashed by 50 percent from 12.5 LTC to 6.25 LTC after the halving. Historical LTC price dataย impliesย that the price of Litecoin could surge months after its halving eventย to the point it hits a new record-breakingย peak next year. The digitalย currency could, onย theย otherย hand, endure a correction right after the halving.
Reportsย by data analyzed by trending digitalย currency analyst Rekt Financialย resources, Litecoin โtrends to rally quite strongly before its halving,โ with the digitalย currency growing 820 percent after bottoming out 122 days ahead of its first-ever halving, and growing 550 percent after bottoming 243 ahead of its Second halving.
Historically, the digitalย currency rallied more after its halving event. After its 1st halving, LTC surged 12,400%, while after its Second halving it rose 1,573%.
ย Inย theย previous 30ย days, Litecoin, a digitalย currency thatโs often referred to as the silver to BTCโs gold, has been on a steady ascent, exhibiting nearly 7 percent growth and nudging itsย price from $86 to $92.
As CryptoGlobe informed its founder Charlie Lee has revealed h believes LTC has potential to see wholeย lotย of profits against the flagship digitalย currency ahead of its highly-anticipated August halving event.
The digitalย currency has already surged 85 percent since reaching a record low against Bitcoinย (BTC) in June 2022, and Lee thinksย that LTC/ Bitcoin could rally to 0.025 BTC, translating to an increase of over 700 percent during theย following bull cycle.
Itโs criticalย to point out that the effect of halving events on the price of a digitalย currency is not certain, and thoughtsย on the matter vary between analysts. The past performance of a digitalย currency does not guarantee future performance.
Featured image viaย Pexels
