Today’s Litecoin halving reduces the LTC block reward for Litecoin miners by 50% to 6.25 LTC, contributing to the asset’s scarcity and deflation.
The halving lowers the speed at which Litecoin’s software releases more coins into circulation.
Third Litecoin Halving Occurs at Block Height 2,520,000
When it occurs at a block height of 2,520,000, the Litecoin software will slice the block reward for the third time since the blockchain was started.
Initially, the software awarded successful miners 50 LTC for each mined transaction block. After today, the reward for a successfully mined block will fall to 6.25 coins.
A miner helps secure the network by gathering transactions into a block, confirming their validity, and correctly guessing a hash, a cryptographic summary of all the payments done. The miner then sends the valid transaction block to all nodes in the network.
After that, the Litecoin algorithm releases the mining reward to the miner’s Litecoin address.
The last halving, set to take place in 2142, will cap the circulating supply of Litecoin at 84,000,000 LTC.
Interested in buying LTC amid the halving hype? Find out where in our comprehensive guide.
Litecoin is a fork of Bitcoin, the oldest cryptocurrency, which is expected to undergo its halving around May 2024.
Anticipating a halving-related price surge, mid-sized LTC whales and miners recently bought large batches of the asset.
Litecoin Hashrate on an Upward Trend
Recently, BeInCrypto reported that Binance’s Litecoin mining power had dropped significantly this year. The firm’s Litecoin hashrate, a measure of how fast it can guess a block’s correct hash, fell from 69 trillion guesses per second in January to 28 trillion in July.
Overall, the number of miners coming online has trended upward in the last six months. The Litecoin algorithm increases the difficulty of guessing the correct hash if there are more miners.
Mining pool ViaBTC currently mines 33% of all Litecoin.
Litecoin Price Drops Before Halving
The six-hour time frame technical analysis shows that the Litecoin (LTC) price broke out from a descending wedge (dashed) pattern on July 28. Descending wedges are considered bullish patterns, and the breakout from it was expected to result in a significant upward movement.
However, shortly after the breakout, the LTC price decreased, in turn validating another descending resistance line (solid). This was the third touch of this line (red icons).
After the rejection, LTC fell to the $90 horizontal support area. With the exception of a deviation (green circle) on July 24, the area has been in place since July 17.
After a weak bounce, the price returned to the $90 horizontal support area and is in the process of breaking down. Whether it does or bounces instead will likely determine the future trend’s direction.
A successful breakout will likely lead to a 16% increase to $105. On the other hand, a breakdown could cause a 6% drop to $84.
Got something to say about Litecoin halving price action or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
Source: https://beincrypto.com/litecoin-halving-success/