Now that the long-awaited Litecoin halving event is underway, hopes and even doubts have started to creep into the minds of crypto enthusiasts and proponents. Everyone is looking forward to how the event will impact the price of the digital asset. Many questions have been raised in this regard.
There have been many questions about the effects of the LTC halving event (which will lead to the reduction of mining rewards). A majority of crypto experts are ready to bet their wits that the event will likely trigger a new uptrend in the price of LTC. However, some people in the community expressed a degree of uncertainty regarding whether or not the event will boost the price movements of Litecoin.
Litecoin (LTC) Price Today – LTC / USD
Litecoin’s Charlie Lee Confirmed the Event will go Live Shortly
Charlie Lee, the founder of Litecoin has confirmed that the LTC halving event will go live soon. The LTC executive did so via a recent tweet. It is important to point out that the halving process is regarded as a way of preserving the purchasing power of cryptocurrencies. It is actually a common practice for cryptos in general and Bitcoin isn’t exempted.
It is understood that the Litecoin code has a rule that reportedly slashes miner reward by half. Currently, Litecoin’s mining reward stands at 25 Litecoins (which is approximately $2,500) per block. However, going by the logic behind the neoteric LTC halving event, it is going to be reduced to 12.5 Litecoins (which is approximately $1,200) per block after August 5.
Halving is Essential for Cryptos
Such a procedure that is, the halving event is considered as a necessary process for cryptocurrencies when you look at the nature of digital assets. These tokens have to be initially distributed one way or another, and a constant rate appears to be the best solution. The idea of a crypto halving was pointed out by Bitcoin creator, Satoshi Nakamoto on the cryptography mailing list back in 2008.
Following the announcement of the news, Litecoin has maintained a safe spot and it remains in the green zone. Although the price of the coin is forecasted to continue growing in the coming weeks, the actual situation looks different at this moment. At press time, according to CoinMarketCap data, the fourth most used digital currency has lost 5% of its value in a period of 24 hours.
Litecoin Price is Now Trading at $93.62
At press time, the price of Litecoin is trading at $93.62. The digital asset has a daily trading volume of about $3 billion and a total market capitalization of $5.8 billion. Though this price action is not very impressive when compared to the price of the coin in June when LTC traded at $145. Now, it is looking optimistic compared to the $61 range that could be seen in Q1 of this year.
With only 3 more days left to the actual halving event, we have to admit that the overall pre-halving hype isn’t as high as expected. In fact, it doesn’t really look like the event will break the current downtrend for LTC. However, the halving event may actually be a positive factor to influence the coin’s price changes in the coming days. We have to wait and see how it plays out after August 5.