Litecoin has had a solid first quarter of this year, sitting on a proud 160% gains in 2019. However, there is still a long road ahead before it even sniffs the previous all time high of $375 per LTC.
Nevertheless, one particular happening heats the hopes of LTC holders as a potential instigator of a bull run. That is halvening or halving, bound to happen in August. Litecoin’s second block reward halving will take place in less than 4 months, with the reward for each block reduced from 25 LTC to 12.5 LTC.
Halving is a consequence of a set of rules that dictate how much litecoin will be released and when and how that supply is reduced overtime, ultimately leading to a time during which there will be no new litecoins released. Litecoin’s block reward started at 50 LTC and is halved every 840,000 blocks.
Historically speaking, halvings have been a big deal, for both bitcoin and litecoin. The halving day does not immediately impact the price of Litecoin. Instead, the effects are felt sometimes months ahead, followed by a surge in price in the following months. The chart below, courtesy of illustrates what kind of price action LTC saw before its first halving in 2015 and what can we expect this time around.
As you can see, the price rallied before the actual event of halving happened, while stalling and consolidating in a prolonged sideways move afterwards.
With this in mind, we can say that halving had a positive impact on LTC price in 2015. As for this year’s inflation and block rewards shortening, we might be experiencing the actual uprise already. As we mentioned at the beginning, LTC is hitherto one of the best performing coins in the market in 2019 which could be linked to the anticipation of the halving.
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very good information….