In less than a week, more precisely on Monday, August 5th, the famous litecoin (LTC) halving will take place, resulting in the reduction of the prize by half for each mined block belonging to the litecoin blockchain.
Starting from block number 1,680,000, in fact, each block correctly mined and validated by the miners will have its prize decreased from the current 25 LTC to 12.5 LTC. Moreover, during the month of August, 75% of the litecoin supply in circulation will be reached.
It is difficult to estimate what will happen after the litecoin halving, as the price in the last three months has gone through several phases, stabilising below 100 dollars and remaining far from the peak of 140 dollars reached at the end of June.
One week to Litecoin (LTC) halving
When halving takes place, it will be important to monitor – in addition to the price – the behaviour of the miners. If the market were to remain stable, there would be a significant drop in hashrate due to the reduction by half of the mining reward.
In recent months, litecoin’s hashrate has experienced significant growth, culminating in mid-July, when the network recorded a maximum hashrate of 523 TH/s, exceeding once again the previous records set in June.
Much of this hashrate could come from Bitmain that, according to rumours circulating on the net, is using the new ASIC Antminer L5 in order to maximise its profits. This product has not been officially presented, but several online vendors and cloud mining solutions have confirmed its existence.
It is very likely that the company will be able to make the official announcement in autumn or shortly after the litecoin halving, so as to maximise revenue and compete with the new solutions coming from Innosilicon.
Much will depend on the behaviour of the litecoin price following the halving, as the value of the currency will be decisive in deciding whether or not to end or continue the current LTC mining rush.
Will the price of litecoin drop?
In recent months several experts have expressed their opinion on the price of litecoin post-halving. At first, many expected a real explosion in the price of LTC in relation to the famous date and part of this expectation was met, given the growth recorded since the beginning of 2019.
Others, including Charlie Lee himself, have repeatedly reported that they expect a significant drop in the price of litecoin, perhaps due to the classic sell on news effect.
In the long term, however, partly to compensate for the reduction of the reward for miners and partly because of the sharp drop in inflation caused by halving, it is rather likely that the price will rise again, albeit slowly. Much will also depend on the performance of other markets and the price of bitcoin, which has always been a determining factor for all altcoins.