As Litecoin’s third halving event approaches, the crypto world is eagerly awaiting it. This event is expected to occur after the 2,520,000th block is mined on August 2, 2023.
What is halving?
A “halving” in the context of cryptocurrencies refers to the moment when the rewards miners receive for validating transactions on the blockchain are cut in half. This means miners earn half of the new coins for every block they mine, which has had a major impact on the value of cryptocurrencies in the past.
Historically, the event has sparked major moves in Litecoin’s value, often preceded similar moves in Bitcoin. This has led some to speculate that Litecoin’s performance could be a harbinger of Bitcoin’s future moves.
Litecoin halving occurs approximately every 840,000 blocks, which takes approximately four years. Since its inception in 2011, Litecoin has undergone two halvings. During these events, the rewards given to miners decrease, which causes the value of Litecoin to increase.
Historical data from previous halvings for various cryptocurrencies can serve as a basis for this expectation. However, skeptics believe that market participants are already aware of the halving event and factoring it into their price calculations and strategies. In this view, the impact of the halving may already be “priced in” ahead of time, meaning any potential price impact is already priced into current market caps.
As the third halving event approaches, it is reasonable to expect increased market attention and potential price volatility. Holders and potential investors will be keeping a close eye on Litecoin as it approaches and passes the halving.
Will this halving push Litecoin higher?
Many Litecoin holders are hoping that the next halving will help provide the spark that pulls Litecoin out of its current price range. For now, it appears that Litecoin has actually managed to turn the all-important resistance level of $91 into support. Above the 50-day and 200-day moving averages should also provide a solid cushion. Litecoin’s rise from here could take it to the next strong resistance at $140.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.