Litecoin (LTC) Hashrate Peaks; New Mining Rigs May Be Operational in Secret
Increasing hashrate on a network may be a sign that a new rig has been released and is operational without disclosure.
The Litecoin (LTC) hashrate has been growing, more than doubling in the past six months. In recent weeks, the hashrate kept rising, and recently peaked above 370 TH/s, mostly boosted by the expectations of the upcoming halving of the block reward in August.
Now, the hashrate rise is ascribed to the possibility that new L5 ASIC machines have been put on the network, and may have been a part of the hashrate for hire in cloud mining services. On a blog by Litecoin.com, a community site, the theory of the L5 ASIC is explained in more detail.
The L5, a new powerful rig by Bitmain, temporarily appeared at BitDeer as an option to hire Scrypt algorithm mining power. This level of hashing power makes the Litecoin network more secure, costing more than $65,000 to perform a 51% attack for an hour. To compare, Bitcoin Cash (BCH) is attackable for $27,000 an hour, and Bitcoin SV (BSV) has a cost of the attack at around $16,000 per hour.
The potential for a secret launch on the Litecoin network is somewhat baffling - in recent months, Bitmain announced its readiness to disclose the shipping of any new mining rigs. In the past, secretive mining by next-generation powerful rigs was deemed as a form of unfair advantage. Bitmain was even accused of using its own rigs to mine cryptocurrency, then shipping to small-scale miners later.
The rumors suggest the L5 may have double the hashrate of its predecessor, the L3, and at lower power usage. Deploying those rigs on the network may mean the halving may not discourage miners, as the chances for rewards would be higher with the new powerful rigs.
LTC is one of the more successful coins in 2019, breaking into triple-digit prices. LTC traded at $103.69 even after the sell-off on Tuesday, and there are expectations of a breakout and levels of around $120. Closer to the halving, more dramatic price moves are expected:
LTC remains one of the more liquid digital assets, with significant inflows from Bitcoin (BTC) and Tether (USDT). However, skeptics continue to criticize the coin as nothing more than a Bitcoin clone.