As of July 25, on-chain data shows that the computing power dedicated to Litecoin network mining by Binance Pool, a platform focused on increasing miner income, has dropped by more than 50% in the past seven months.

In cryptocurrency mining, hashrate is the cumulative computing power fed into a proof-of-work network such as Bitcoin, Litecoin, or Monero.​

These public networks rely on miners distributed around the world to achieve security, decentralization, and transaction confirmation.

Binance mining pool Litecoin hashrate drops by 50%

Binance Pool currently allocates around 28 TH/s of hashrate to the Litecoin network, down from the average hash rate of around 69 TH/s recorded in January 2023. As a result, Binance Pool lost its status as one of the major Litecoin mining pools as of July 2023.​

As of July 25, Binance Pool ranked seventh in the Litecoin mining pool scene, accounting for about 3.6% of the total computing power share.

In contrast, competitors such as Biyin Pool, F2Pool, and viaBTC occupy higher positions, indicating that although Binance Pool has the support of Binance, the world's largest cryptocurrency exchange, miners are choosing other mining pools, some of which are among the first in the world.

At this time, it is not immediately clear what the reason is. However, Binance is facing legal challenges in multiple countries, especially in the United States.

The country’s two top regulators, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), have sued the exchange, alleging violations of securities laws.

In terms of computing power, viaBTC currently controls the largest share of Litecoin mining, accounting for 33% of the total computing power of the Litecoin network. F2Pool follows closely with a share of around 17.2%, while antpool ranks third with a market share of 13%. Litecoin mining pools and mining pools also provide more computing power than Binance Pool.

Given the increasingly fierce competition in the mining industry, individual miners must pool their resources and contribute computing power through mining pools.

Despite a decline in ranking and hashrate over the past seven months, Binance Pool still plays a key role in proof-of-work mining networks, including Bitcoin.

Will LTC rebound after revenue is halved?

Litecoin currently rewards miners with 12.5 LTC and transaction fees for each mined block. However, this reward is set to be halved in the coming weeks.

The halving will even affect block mining revenue. Nevertheless, the price increase may encourage miners to upgrade their equipment and deploy miners with higher computing power.

Currently, Litecoin’s total hashrate is around 780 TH/s, with the network releasing 7,200 LTC per day to miners. However, it remains to be seen how Litecoin prices will react due to the expected supply shock. If past cycles are a guide, Litecoin could bounce back.

According to the Litecoin daily price chart, LTC has resistance around $115, but is currently trading below $100. At this level, it is down 23% from its peak in July 2023.