The price of Litecoin has been rising in the market since early 2023 and the currency community is looking forward to the third halving in its history. The event is expected to halve the daily issuance of new coins, currently at 7,200 LTCs per day.
With the projected halving for the month of August 2023, Litecoin is expected to spend just 3,600 LTCs per day.
When the halving takes place, the Litecoin reward for miners will be halved. Before the first Litecoin halving, which took place on August 25, 2015, the reward was 50 Litecoins per block. After the halving, the reward was reduced to 25 Litecoins per block.
The second halving took place on August 5, 2019, when the reward was reduced to 12.5 Litecoins per block.
So, with the third halving scheduled for the coming months of 2023, the block reward should drop to 6.25 Litecoins per block.
With expectations for a halving, Litecoin is hoping for a 34% increase in 2023
The Litecoin halving is an event that takes place approximately every four years where miner rewards are halved for each block of transactions validated on the network.
This process is part of the Litecoin issuance protocol and aims to control digital currency inflation over time.
LTC’s entire structure is inspired by Bitcoin, which also features proof-of-work mining and a constant quest for decentralization.
With the community’s new expectation for the reduction in new coin production, the price of Litecoin in Dollar has already reached the US$94.5 per unit mark. Since the first day of 2023, when each coin cost just $70, the coin is up 34%.
With respect to the Brazilian Real, Litecoin is accumulating a 25% increase with each coin costing R$471.95, according to Crypto Market data.
Litecoin has not yet produced 90% of all its coins
While these similarities exist, it is important to note that Litecoin also has some significant differences from Bitcoin. For example, the average block time on Litecoin is 2.5 minutes, compared to Bitcoin’s 10 minutes.
Another difference concerns the total issuance of coins. In the case of Bitcoin, it has a maximum supply limit of 21 million coins. As of June 2023, the bitcoin network has produced 92% of all coins, with 19,391,169.00 BTC issued.
The Litecoin network has a maximum supply limit of 84 million coins, of which 86% (73,060,550 LTCs) were spent on June 2, 2023. Another interesting detail is that while Litecoin prepares for its third halving, bitcoin will pass in 2024. the 4th reduction in coin issuance.
Importantly, both Bitcoin and Litecoin have declining inflation rates as new coin issuance decreases over time.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
