Litecoin (LTC) Halving Arrives in a Week But Price Action Remains Depressed
LTC prices stabilized above $90, but the halving may bring unpredictable turbulence.
Litecoin (LTC)is just a week away from its halving, when the block reward would drop to 12.5 LTC. The asset is yet to reveal the price direction it would take, especially as the entire market is at a crossroads.
LTC traded around $90.23 on Monday, hanging on as the fourth largest coin by market capitalization. Until now, the halvings have historically led to a significant price spike, followed by a slide to lower valuations.
The Litecoin hashrate remains relatively high, above 474 TH/s, still down from a peak of 523 TH/s. This hashrate may also suffer once the reward falls. The Litecoin network only works through 25,000 transactions per day, a rather insufficient number to ensure significant transaction rewards per block.
LTC trading is boosted by inflows from the Bitcoin (BTC) markets, to the tune of $266 million’s equivalent. Around $166 million’s equivalent flow directly from Tether (USDT). LTC trading still exceeds a total of $2.5 billion’s equivalent, as the asset is a part of multiple pairs, as a base cryptocurrency.
For now, there is no certainty whether LTC will manage to get a boost and trigger an altcoin season. The coin is yet to turn the tide against BTC, as the price hovers around 0.0093 BTC.
As July nears its end, BTC is on track to record a monthly loss. Altcoins are still not rallying either and some hope the Litecoin network event may turn into a triggering point to boost the market activity. Still, the halving may have been discounted, when LTC reached its yearly peak around $140.
LTC is also the fourth most active asset in terms of trading, holding up around 5.29% of all crypto activity. Currently, USDT and BTC make the bulk of crypto trading, but the influence of LTC on niche exchanges and more obscure trading pairs may help boost the markets. While crypto prices remain unpredictable, the expectations for LTC are for a rally as high as $120 in the days leading up to the halving.
However, at this point, it is uncertain if a breakout would happen, as prices remain depressed across the board.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.