Litecoin LTC has successfully undergone its third halving event.

Contrary to the bullish expectations around the halving, LTC continues to fall.

The much-anticipated Litecoin halving has finally taken place, but it was anticlimactic. This is because expectations were high for the event given LTC’s scarcity.

Before we dive into the details, it’s important to understand the core concept behind halving. This occurs when the block reward issued for transaction validation in a proof-of-work network is reduced by half.

In the case of Litecoin, the halving every four years will reduce the amount of LTC in circulation. Doing so will reduce the impact of inflation on LTC while keeping the supply low.

Litecoin’s price action during previous halvings reveals something interesting

The above changes highlight one of the main reasons for the widespread bullish expectations in recent times. Unfortunately, in the days leading up to Litecoin’s recent halving, LTC’s actual performance was quite lackluster. However, this is not surprising, especially from a historical perspective.

Looking back, Litecoin’s halving events in 2015 and 2019 did not have much impact on its price trend. In 2019, the price continued to fall a few days after the halving, which confirmed that the halving had little impact on the price.

Meanwhile, IntoTheBlock has just published a comparison of some key metrics, comparing the state of Litecoin in 2019 and 2023.

Halving Successful, LTC Bears Have the Upper Hand

Interestingly, LTC’s price action also maintained similar results. Given the importance of the halving and the hype surrounding it, a bullish outcome was expected, but this was not the case.

Conversely, LTC has continued its bearish performance since early July. LTC is trading at $87.59 after falling 6.7% in the past 24 hours.

In terms of on-chain observations, we are seeing a slight uptick in total open interest in USD. But the most notable change is the surge in social volume, especially in the last 24 hours, which has surged to new monthly highs.

Despite the surge in social volume, on-chain transaction volume rose only slightly.

Assessing LTC’s buying or selling pressure shows that the realized cap has risen slightly over the past two days. This reflects the prevailing selling pressure over the past 24 hours, which means that short-term profit-taking is still active.

On the other hand, the average age of coins has been rising steadily over the past four weeks.

The increase in average coin age confirms that there is still a lot of hoarding activity in the LTC community despite negative price action.