The Litecoin Halving and Price Changes

Last month Litecoin (LTC) caught the attention of the crypto world when it completed its planned ‘halving’. Litecoin, which remains the 5th largest cryptocurrency in terms of market cap, has the halving written into it’s white paper and it was an event that many investors were expecting.

 The halving event was scheduled by Litecoin to take place on August the 5th, which happened without any issues. However, what is this halving exactly and how has it affected the LTC price?

 The halving event has been an important event, especially for the Litecoin miners because it has changed the     reward amount for them. It all started when the Litecoin blockchain reached the block height amount of 1,680,000.

 When this block level was reached it instantly triggered and started the halving process. This also caused the miners rewards to be immediately be decreased. Previously the miner’s reward was 25 LTC, now with the change the reward is just 12.5 LTC- not great if you are a miner.

 This blockchain feature has been put into place by Litecoin so that the amount of rewards for miners will halve automatically every 840,000 blocks. To imagine this in a time frame, this occurs roughly every four years. So the next time this halving will happen is 2023, around August.

 Besides the bad news for miners, the halving also means that fewer LTC have been added to the market since August the 5th. This situation is likely to result in a drop in the mining production mainly due to the fact  that  the mining difficulty will adjust, as well as the prospect of smaller rewards for the miners.

 Many Litecoin miners will simply go to other rival cryptocurrencies that offer better rewards instead, if this happens in the upcoming months this well lead to a general decline in the hash rate.

 Still it’s not all bad new for the miners. There are 63 million Litecoins out of the total supply of 84 million currently in circulation. This means that there is still a fair amount of  21million blocks available for mining. This remaining block quantity plus the current Litecoin price may be an attractive enough offer to stop miners from leaving, even if it means that the crypto mining market will become even more competitive.

 How does all of this affect the Litecoin price though? Well when there are any scheduled changes like this in the market, then volatility often occurs. Many LTC holders and traders were aware of the halving date and expected a lot of price volatility after the incident. Even if it’s only been a month since the halving, the price volatility has not been as extreme and some investors were expecting.

 On the 5th of August, the scheduled day for the halving, the Litecoin price grew 10% to $100.38. However, the LTC price then steadily dropped to the ‘before halving’ price of $92 within 24 hours. Of course this was disappointing because a lot of investors were expecting a lot more post-halving price growth. Instead the price performance has been pretty lacklustre since then.

 However, since the initial halving price spike, the LTC value has continued to drop, and as we enter September one Litecoin is worth $68,79. This could be of some concern if you’re an owner of any Litecoins, particularly because the digital currency was doing pretty well at the start of 2019.

 In fact in January 2019, the Litecoin price increased from $30 to reach an impressive $142 by June. It then gradually decreased in price before the halving date, but it still sat comfortably above $75.

 It’s a pretty different scenario when the first ever halving took place back in August 2015. When that happened the Litecoin price reached its peak value in July, but it lost nearly half of its value by the time of the halving in August. However, after the reduction had taken place in 2015, the LTC value increased by 75%. 

 Although 2019 may not have performed the same way as 2015 price wise, a lot of people still believe in the future of Litecoin, and that the cryptocurrency can recover after this underwhelming performance.

 There has been a lot of encouragement for users from a recent statement made by the founder of Litecoin Charlie Lee. Lee in a recent tweet wrote that ‘ it’s time now for me to shift focus from adoption back to development’ and that he planned to ‘get the ball rolling’. This was great news for a lot of LTC owners to hear, the fact that upcoming development is planned can only be a good thing.

 This is a positive step because it’s likely that the scheduled development will also include updates on Confidential Transaction updates. It’s important that these features are worked on and developed because it’ll improve Litecoin’s performance. Additionally it’s also likely to affect its price in a good way.

 We’d recommend watching out for any future developments on the LTC price to see how things will change for it this year. It’ll be interesting to see if it can rise and recover again for the last half of 2019. This could be a good reason why to invest in Litecoin in the future.