Litecoin (LTC) Succesfully Undergoes Halving Event
The Litecoin network officially went through its halving event, reducing the block reward to 6.25 LTC.
On Wednesday at approximately 15:06 UTC, a reduction occurred at block height 2,520,000, as reported on litecoinspace.org.
In anticipation of this event, the trading activity surged significantly. Litecoin‘s halving occurs every 840,000 blocks, as outlined in its whitepaper.
Historical data from CoinMarketCap shows that the previous halving in 2019 resulted in a notable surge in Litecoin’s value. In the week leading up to the halving, LTC prices fluctuated between $91 and $95. At the time of writing, LTC is trading at around $89 after a 4% decline in the past 24 hours.
The anticipation for the 2023 halving is evident as Litecoin experiences a surge in demand. In the last 24 hours, the coin’s trading volume increased by over 30% to approximately $750 million, according to CoinMarketCap.
Leading up to the event, Litecoin’s price fluctuated, reaching a peak of $114 on July 3 and dipping below $100. At the time of writing, the price ranged between $89.81 and $94.27, marking the highest level in the past seven days.
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The block reward for miners has reduced over time, starting at 50 LTC and decreasing to 25 LTC and 12.5 LTC in the 2015 and 2019 halvings, respectively.
Despite this reduction in rewards, miners have been accumulating reserves, with an additional 400,000 LTC added in July, bringing the total reserves to 2.30 million LTC, valued at around $213 million at current prices.
The reduction in rewards combined with the possibility of lower market supply due to miners holding onto their rewards could potentially prevent a significant post-halving price decline.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
