Excitement related to the August 2023 halving drives the price of Litecoin. The demand over the last few days is strengthened.
These first days of June start with strength for the price of Litecoin, one of the most stable digital currencies in the entire crypto market. The good performance of this asset value could be related to the enthusiasm that is generated around the halving that will occur in August this year.
During the last 7 days, the price of the coin presents an outstanding growth of +7.39%. Furthermore, its 24-hour growth is +1.40%. At the same time, its price is $93.68 per unit, according to data from CoinMarketCap.
Based on the above-mentioned, it can be said that investors are interested in a currency that is characterized by scarcity. In other words, similar to Bitcoin, this crypto has an emission cap of 84 million LTC (in BTC it is 21 million). Although the structure of the two currencies is almost identical, the amount is higher in LTC, which is why it bears the name “digital silver”.
Litecoin Price and its Relationship with the Halving
The proximity of the Litecoin halving could be related to the current momentum of its price. The halving is an automatic network event that halves the miners’ reward. In this way, for each mined block a number of coins is awarded, which is cut in half after the event.
This halving occurs in some coins that work through Proof-of-Work (PoW) or mining. In particular, these are coins with an issuance ceiling, that is, when that limit is reached, new coins will never be generated. This suggests that the cuts are a clear sign that the scarcity of an asset is increasing, which is boosting its price.
The current Litecoin price, below $100 per coin, could exceed levels of several thousand dollars in the long run, thanks to the intrinsic scarcity of its emission ceiling, as well as its accentuation due to halvings.
Litecoin Halving in Detail
On August 2this year, the third halving will take place on the Litecoin Blockchain. This event consists of cutting miner rewards by 50%. In the case of Litecoin, the payment for each valid block of transactions will decrease from 12.5 to 6.25 LTC.
When Litecoin came out in 2011, the reward was 50 LTC for each block mined. Now, after two halvings (2013 and 2018), the reward is 12.25 LTC, and from August it will be 6.25 LTC. Similar to the case of Bitcoin, the halving occurs every four years. Litecoin halving will occur at block 2,520,000.
Knowing how far the price of Litecoin will go is complex now. Volatility will increase and market speculation creates instability for any analysis or prediction. Analysts see the halving as a strong enough catalyst to break several resistances up to $150.
Similarly, for Coin Price Forecast analysts, the price target is $153 for December this year. Among the most bullish is Currency.com, which places a target of $500 per coin. However, the latter does not give a precise date.
Litecoin is an easy bet as it is available on most large exchanges. In addition, it can be easily sent to self-custody wallets, as its network transactions are remarkably low. Be that as it may, the halving of “digital silver” is at the gates, and the LTC price is already reacting positively.
By Audy Castaneda
