Litecoin (LTC), one of the well-established altcoin projects, has been attracting attention recently due to a halving that will take place in the middle of 2023. In particular, an analysis of how LTC has acted in previous halving cycles has revived hopes for the price. Here are the details…
The next halving for Litecoin is in August!
cryptocoin.com As we reported, Litecoin halving is a major event in the Litecoin monetary system that reduces the reward by 50 percent for each block mined, roughly every four years, every 840,000 blocks. Litecoin halving means that Litecoin has a disinflationary monetary system. This reduction in block reward means there will be fewer Litecoins issued and released per block; this could lead to an increase in Litecoin price assuming demand remains the same.
The first Litecoin halving took place on August 25, 2015 at block height of 840,000. Block reward reduced from 50 coins per block to 25 coins. The second Litecoin halving took place on August 5, 2019 at block height of 1,680,000. Block reward reduced from 25 coins per block to 12.5 coins. The third Litecoin halving is expected to occur in August 2023 at a block height of 2.520,000. The block reward will be reduced from 12.5 coins to 6.25 per block. The fourth Litecoin halving is expected to occur around July 2027 at block height of 3,360,000. The block reward will be reduced from 6.25 coins to 3,125 per block.
Effect of halving on altcoin
The Litecoin halving is a major event that happens every 840,000 blocks, roughly every four years. Halving may cause an increase in Litecoin price. If the Litecoin reward per block is reduced by 50% while the demand for Litecoin remains stable, this could result in an increase in Litecoin price. On the other hand, the decrease in block reward means that miners will receive less Litecoin in return for their efforts. This can lead to a decrease in mining profitability if the price does not increase, which may cause some miners to leave the network.
LTC always peaked before halving
Meanwhile, renowned analyst Rekt Capital studied LTC’s previous halving cycles and concluded that the altcoin always peaked before the halving. For example, before the first and second halvings, LTC rose 820 percent and 550 percent. However, it fell sharply after each halving. For example, it fell 73 percent after the first halving and 83 percent after the second halving.
However, the analyst still seems hopeful for the next halving. The analyst states that the duration of the pre-halving rally in LTC may expand. He predicts the altcoin will rise as much as 285 percent before the next halving. However, he thinks the amount of collapse that follows will be a minimum of 73 percent. Apart from that, the analyst is waiting for LTC to enter the post-halving accumulation phase. Also, the post-halving period marks a period of “sideways movement” for the coin.
Apart from that, the pre-halving peak took place 31 days before the first halving and 61 days before the second halving. In line with these data, the analyst underlines the possibility that the next summit will take place in May 2023, 91 days before the third halving. However, he states that if a two-peaked summit is seen, we can see a high level in April 2023.
