Although Litecoin’s halving event is approaching, the market does not seem to be paying much attention to it, which has raised concerns about its future.
I researched Litecoin and its upcoming halving event, which is approximately 38 days away, first looking at the historical context:
Litecoin was created in 2011 based on Bitcoin with faster block times and a different mining algorithm. Like Bitcoin, Litecoin halves its block reward every 4 years to reduce inflation and increase scarcity.
Why is the halving event bullish?
First, because miners’ rewards are halved, this reduces the structural supply of selling. Less selling = higher prices, simple as that.
After three Bitcoin halving events, the price has shown a parabolic upward trend, and most people associate halving events with bullishness. The best narrative should be able to attract people of all IQs.
Is the halving event necessarily bullish?
uncertain.
Since the halving event reduces the amount of rewards, it reduces the diversity of the types of participants who can profit and protect the network. Therefore, all else being equal, each halving event weakens the security of the network while increasing scarcity.
When people bid for the halving event, it is actually a vote of confidence that the security of the network is worth protecting.
Now let’s take a look at the Litecoin halving event.
With less than 38 days until the halving event, we have yet to see strong interest in it. Past Litecoin halving events saw price peaks approximately 50 days before the halving event.
We can’t extrapolate from two data points from completely different coins. But crypto silliness never stops, and the apathy towards the Litecoin halving event may be a sign that the network’s security isn’t worth saving. Since 2019, more innovative cryptocurrencies have emerged on the market, leaving poor Litecoin behind.
But to be honest, I don’t think Litecoin is ready to go away. Most people I talk to are in favor of the halving event, they just haven’t had a strong enough pull for the bulls to enter yet.
Meanwhile, Litecoin’s on-chain activity has been quietly growing since the launch of LTC-20, a fork of Bitcoin’s BRC-20 token standard, on May 3. The past week has seen more transactions than ever before.
There is not much time left for LTC dealers. If these 38 days cannot make the market take a new look at LTC, perhaps LTC will really fade out of people's sight in the future! #ltc #BTC #ETH #BCH