Litecoin completed its much-anticipated halving event today, but investors appear to have already reacted by engaging in a sell-off. #莱特币 #币圈
Litecoin follows Bitcoin in undergoing a halving cycle every 4 years.
According to CMC data, LTC has fallen over the past 24 hours, down 6.57% to $86.95.
As of today, the rate at which Litecoin is issued has been cut in half, a phenomenon known as a “halving.” Litecoin follows Bitcoin in its halving cycle every four years.
During a cryptocurrency halving event, the block reward for validating blockchain transactions is cut in half. After the event, miners will be rewarded with cryptocurrency at a 50% lower price per block. Due to the scarcity created by the halving process, the value of cryptocurrencies may remain or even increase.
The goal is to increase the value of each coin by reducing the number produced, thereby reducing network inflation. Assuming no further changes to the network infrastructure are required, this should theoretically lead to higher prices.
Litecoin founder Charlie Lee said he believes these regular halvings will help with widespread adoption without jeopardizing the underlying security of the network.
Selling pressure
However, LTC has not seen any price gains yet. Instead, the currency has lost value over the past 24 hours, falling 6.57% to $86.95, according to CMC data. The market capitalization is down 6% and now stands at $6,413,084,253.
Since the halving is a significant event, naturally there has been a lot of discussion as this latest event approaches. In early July, the asset surged to the $114 mark as the market was likely hopeful about the halving, which is only a month away.
However, this rally quickly ran out of steam, and since then, LTC has struggled to develop any significant bullish momentum.
While the asset’s price performance may be poor, LTC supporters may take comfort in the fact that the asset has made great progress in other network-related metrics since the last halving, as shown by data from IntoTheBlock:
Interestingly, the price of both halvings was roughly the same. LTC seems to be doing well in terms of user base and utility-related growth.
This impressive growth is likely due to Litecoin offering cheap and fast transactions compared to other networks like Bitcoin. Of course, LTC investors hope that this growth will also be reflected in the price.