- Litecoin halving is just a few days away.
- Analysts are optimistic that the event will help the coin chart a bullish growth in the near term.
As the Litecoin (LTC) halving event draws closer, it looks like the altcoin is having a field day. With the halving event only a few days away, renowned on-chain data analytics firm Santiment has reported a growing interest in Litecoin. In less than 24 hours, LTC trading volume surged by almost 50%, moving from $377 million to an impressive $560 million.
While there has been a remarkable surge in LTC trading volume, its price decline has come to a halt. The cresting price comes after the coin lost more than 20% of its value within one month starting in June. Analysts have noticed a potential market sentiment shift from close analysis of smaller time frame charts.
Analyst Benjamin Cowen recalled a recurring trend associated with an LTC halving event. According to Cowen’s historical analysis, the price of LTC usually falls between June and July which precedes the halving event. Interestingly, his argument seems to fall in line with when LTC price began to fall recently. Similarly, analyst Ali Martinez also referenced a data-driven pattern which is somewhat linked to the halving event.
Based on Martinez’s inspection, within the last five years, a sizable price correction usually comes anytime the number of new LTC addresses exceeds 350,000. Noteworthy, there has been a recent creation of more than 690,000 LTC addresses. Amidst all of this analysis, the surge in LTC trading volume has sparked excitement in the hearts of many investors but at the same time, they remain cautious about a possible price dip.
Investors Look Forward to Litecoin Halving Event
Currently, LTC is trading at $91, down by 0.41% in the past 24 hours. Two weeks ago, Litecoin celebrated its 170 millionth transaction, marking a significant milestone in the ecosystem fueled by an increase in the number of wallet addresses holding less than 10 Litecoin.
Also, whales are showing an increased interest in the token.
The LTC halving event is designed to slash miners’ rewards every four years. The date varies based on the completion of mining 840,000 blocks of Litecoin. Two weeks ago, only about 9,875 blocks were remaining until this event. Markedly, the first halving of this cryptocurrency happened eight years ago. The upcoming halving event is scheduled to reduce Litecoin’s mining rewards from 12.5 LTC to 6.25 LTC.
This halving event plays a crucial role in the price, technology and general roadmap of the LTC token. Once the event takes place, mining rig owners may earn $607.8 every 2.5 minutes. The aim of slashing the mining reward for LTC is to reduce and control the supply of the token as a strategy for conservation.
It also has a positive influence on the price of the token as a deflation may immediately be followed by increased demand.
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