The attention of the cryptocurrency community is currently focused on the dynamics of the Litecoin price — the fourth largest cryptocurrency capitalization with a figure of 8.1 billion dollars. The reason for such attention: a little more than a month is left until (August 5) when the amount of remuneration for each created block (halving), that is, from 25 to 12.5 LTC, should be halved on the network of this cryptomonet . A similar event will take place in the Bitcoin blockchain, but in May 2020.
Reducing the rate of increase in asset offer, be it Litecoin or Bitcoin, according to the law of market demand, should ultimately push the price upwards, and now traders are given the opportunity to test this truth using Litecoin as an example, taking into account the protracted cryptozyme that lasted longer one year, and also that the
market remains high volatility. Recall that all in the Bitcoin and Litecoin network may appear as a result of 21 and 83 million cryptomonet, respectively.
Litecoin has already risen strongly since the beginning of the year, however, like Bitcoin, that is, the oldest cryptocurrency led Litecoin, and now LTC will be able to demonstrate whether it is able to carry other altcoins with its positive impulse. So, since the beginning of the year, Litecoin has risen in price by 3.9 times, starting the year at the level of 29.12 dollars and currently trading in the range from 130 to 140 dollars.
Altcoin has existed since 2011, and therefore statistics has accumulated that shows how it reacted to previous halvings in its network. So, in 2015, when the first litecoin halving occurred, its price jumped from 1.34 dollars to more than 7 dollars, and most of this one-year growth occurred several months before the onset of the specified event in the blockchain of a digital asset.
The rise in Litecoin price is important not only from the point of view of investors who want to make money on the rise, but also for miners who need to noticeably increase the price of this cryptocurrency to compensate for the smaller “output” in Litecoin mining. If this does not happen, it will lead to massive losses of Litecoin miners, but it will also affect how Bitcoin will be mined, as investors will be able to fear the risks of halving this cryptocurrency next year.