Litecoin halving day is fast approaching, and the network is seeing a significant uptick in activity as a result. With more and more investors flocking to the blockchain, the number of active LTC addresses has skyrocketed.
What does it mean for the future of Litecoin? Let’s dive in.
The Number of Active Addresses is the Highest in Litecoin History
The number of active addresses on the Litecoin network started to rise at the beginning of the year. However, it was not until May 2023, that it blew to an all-time high. Though this might be a good thing, it is noteworthy that only about 1,000 addresses control over 60% of all LTC in circulation.
Halving is designed to control the supply of Litecoin and maintain its scarcity. The more scarce it gets the more its intrinsic value increases.
The LTC halving will reduce block reward from 12.5 LTC to 6.25 LTC. The prospects of a pump in price has caught the attention of investors, generating renewed interest in its potential.
Will LTC Price Rise with the Halving?
In finance, the more things change, the more they remain the same. Looking at Litecoin price before and after the last two halving events, a pattern starts to emerge.
In 2015, Litecoin rallied 826.82%, and a retrace followed shortly after the end of that bull market. The asset proceeded to range for 1 year and 9 months before the beginning of the 2017 bull market that sent it up 12,833.02% to top out at $380 per coin.
Following this, the 2018-2019 bear market hit and LTC dropped to $23.64 before rising again with the 2021 bull market that saw the asset touch $410.26. This was a +1,710.37% from the 2018 low.
Litecoin is currently trading at $88.78.
While the last two halving events followed a similar hype cycle and yielded more than 800% returns, the third halving seems to have a completely different outlook. This time around, LTC price has been consolidating over since the beginning of the year.
Conclusion
Nevertheless, Bitcoin’s price movement has also historically set the tone for the broader cryptocurrency market, and Litecoin’ s recent rally is a testament to its relationship. As Bitcoin continues to make strides and capture attention with its upward movement, altcoins like LTC stand to benefit from the increased marked interest and positive sentiment.