The halving occurred at the height of block 1,680,000 of the Litecoin network. The Litecoin block reward was reduced from 25 to 12.5 LTC for each mined block.
It was reported that the second halving of the Litecoin cryptocurrency already occurred, an event in which the issuance of tokens in its network was reduced by half. This fact, coupled with the recovery of the cryptocurrency market starting during the second quarter of this year, has produced significant growth in Litecoin prices since the beginning of 2019.
The halving reduced the reward of miners in the Litecoin network from 25 LTC to 12.5 LTC per mined block from block height 1,680,000. This programmed reduction is part of the coding of projects that operate under the same economic rules as Bitcoin. In the case of Litecoin, the event occurs every 840,000 mined blocks, the second time occurring on August 5th, 2019.
Halvings usually influence the valuation of cryptocurrencies, a fact that connoisseurs describe as normal. As stated, this is because market players accumulate coins, anticipating the impact that the reduction of the reward to miners will have on the supply of tokens.
In the case of Litecoin, within the framework of the 2019 bullish cycle in the cryptocurrency market, the influence of halving has boosted its performance even above that of Bitcoin. The maximum price of Litecoin this year was more than US $ 146, that is, it multiplied almost five times compared to the US $ 30.5 at which it was valued at the beginning of 2019. This increase implies a percentage differential of 380%.
However, like the rest of the market, Litecoin has been suffering a correction in its price for several weeks, which brought it below US $ 80. Despite this, its recovery so far in 2019 has remained positive, with a percentage of 254%.
After the reduction of Litecoin (LTC) block rewards, its price has risen slightly, which could be due to the high media exposure that Litecoin has received lately due to the proximity and occurrence of halving. At the time of writing this article, the price of LTC stands at US $ 97.81, reflecting an increase of about 11% so far this day.
After the halving, several investors expected that the price of LTC would plummet, as it was a public and notable event that all market participants were awaiting, which could be a market exit point for whales, that is, the biggest investors.
The Litecoin cryptocurrency was created in 2011 by computer scientist Charlie Lee, who set out to create a lightweight version of Bitcoin in terms of energy consumption of mining activity. The issuance of Litecoin was set at 84 million LTC, and its average block confirmation time is two and a half minutes, in contrast to the average 10 minutes that it takes the Bitcoin process.
The first Litecoin halving, which took its issuance of 50 LTC to 25 LTC, occurred in August 2015. At that time, cryptocurrency prices also experienced a significant increase, in the months before the event and some months after it.
By Willmen Blanco
