Second Litecoin Halving Ends With LTC Price Rallying Past $100
Coinspeaker
Second Litecoin Halving Ends With LTC Price Rallying Past $100
Second Litecoin halving ended with 75% of Litecoin mined and the price of LTC at $99.6.
Yesterday Litecoin dropped more than 18%, falling out of #4 market cap spot. However, after the halving, it came back to its fourth position with the growth of the huge 14.63 percent to, at the time of writing, still rising price of $105.59.
Four years have passed since Litecoin’s first-ever halving. From then on, the overall price went up more than 20 times getting its investors pretty good returns. What’s more impressive is the growth in hashrate. The network has done an impressive 360 times better meaning that the yearly increase in security is pretty high as well.
Its creator Charlie Lee reacted to a Fed’s Cutting rates saying:
I'm announcing today that in 4 days, I will be cutting Litecoin mining rewards in half for the first time in 4 years. This should help prevent the possibility of a cryptocurrency downturn. 👍
And I will cut it in half again in 2023! 😮 https://t.co/YmUIHx5fLi
— Charlie Lee [LTC⚡] (@SatoshiLite) August 1, 2019
Data from CoinMarketCap showed Litecoin trading at around $97.68 Monday, just 20 minutes before the halving.
The Litecoin code includes a rule that slashes every miners’ reward by half. Presently, the mining reward is set at 25 Litecoins (approximately $2,500) per block. But following the neoteric halving event, it will be cut down to 12.5 Litecoins (approximately $1,200) per block.
Some analysts were pretty pessimistic noting that Litecoin investors may be very disappointed by the crypto’s price action in the coming days and weeks, as it has previously faced significant selling pressure following its halving event
It seems that worries were definitely not in order and that Charlie Lee was right when he said that potentially, a few miners might turn off their machines. But after a few days, Lee claims, the mining difficulty will readjust and everything will be back to normal.
What seemed like an assurance from the recent drop in market cap, Lee pointed out that the halving phase compels users to trade depending on their belief of pump, thus making the market “more volatile around that area.” Overall, he shared his belief that “the halving will happen and nothing will go wrong.”
Halvings are always very closely monitored by investors, as the consequent reduction in mining rewards affects the profitability and it can result in a knock-on effect on the price. As per the supply and demand theory, halvings should drive up the price of the cryptocurrency.
As they receive fewer coins per block solved, miners stop mining until the work once again becomes profitable. As fewer coins enter circulation, the price consequently goes up, overtaking the supply. Although this sounds like a sure-fire win for investors, halvings can bring about even greater instability to an already unstable market.
Litecoin, which traded at $30 on at the very beginning of this year, ended the first quarter at $61, what represents more than a 100 percent gain. That was LTC’s best first-quarter performance on record and the cryptocurrency economized out huge gains in the first three months of this year in spite of the fact that the Bitcoin was pretty much flat.
Essentially, LTC broke into a bull market well before Bitcoin started its bullish trend change, passing through the key resistance at $4,236 on April 2. Prices went on to hit highs above $140 in June before falling back to $80 earlier this month.
Second Litecoin Halving Ends With LTC Price Rallying Past $100
OhNoCrypto
via https://www.ohnocrypto.com
Teuta Franjkovic, Khareem Sudlow
