- A halving is very important to many cryptocurrencies, including Litecoin. Recently, Litecoin halving happened, bringing up many speculations regarding the token.
- Apparently, this is the third halving Litecoin is having on its network. The new halving from Litecoin reduces the rewards down to 6.25 LTC.
The Litecoin halving is a very big achievement for the network, as the event will bring many benefits. The event happened on the 2nd of August 2023 and was the third halving happening in the network. Apparently, halving on many blockchain networks happens every four years. Halving slows down the distribution of the token supply of a cryptocurrency and, at the same time, reduces rewards earned. Note that only blockchains using the proof-of-work model employ the halving mechanism. Now the halving is complete, what next for Litecoin?
History of Litecoin Halving
The halving on 2nd August is the third Litecoin halving. Previously, 2 other separate halvings happened besides the third one. Litecoin halvings happen every four years, so 12 years is in between the three halvings. Apparently, the origin block in the Litecoin blockchain was mined on October 7th, 2007, at a 50 LTC reward. But over the years, the rewards continue to reduce drastically.
The next halving event was in 2015 at the 840,000th block. Since it was halving, the rewards earned from mining in the Litecoin ecosystem reduced. From 50 LTC, it reduced to 25 LTC in 2015. The second halving was in 2019, and the rewards became 12.5 LTC. The most recent halving is in 2023, further reducing the rewards to 6.25 LTC.
What Next For Litecoin?
After the latest Litecoin halving, the most significant effect is the reduction in supply. As said before, one of the benefits of halving is helping to distribute tokens. With halving, the number of tokens getting released to the market stalls. With a simple economic theory, a product becomes scarce when there is less supply. Subsequently, this leads to higher demand.
The same thing might happen to Litecoin, although it depends on other market situations. The Litecoin halving happens once the blockchain hits 840,000. So crypto enthusiasts expect the next halving to occur in 2027.
Will LTC Price Increase After Litecoin Halving?
The major question people ask after the halving is about the price of Litecoin. Will Litecoin’s price increase after the new halving? Guessing if Litecoin’s price will increase depends on many things.
Historically, the price of cryptocurrencies is known to increase after halving. Although in the case of Litecoin, the price might not increase immediately. It will take many pumps and corrections. Most importantly, Litecoin needs the support of other cryptocurrencies to pump, especially BTC and ETH.
In conclusion, the third Litecoin halving is a success, and there are huge expectations after the event. Apparently, the next Litecoin halving will happen in 2027. However, considering its historical data, Litecoin’s price might increase after the halving. Between now and the next halving, a significant increase might happen.
