#Litecoin has experienced and continues to experience a significant price increase since May 8th. The increase coincided with the fact that transaction fees in Bitcoin rose to $ 30, but while the fees were falling, the rise in #LTC continued. Cryptocurrency gained 25 percent in about a week, almost reaching $100 again.
One of the factors affecting this rise in Litecoin is thought to be the upcoming block reward halving. This event, also known as halving, happens every four years, just like Bitcoin. When halving occurs, the reward per block for Litecoin miners is halved. This means that the supply of new LTC decreases. The last halving in Litecoin took place on August 5, 2019. In this halving, the rewards have dropped to 12.5 LTC and will decrease to 6.25 LTC in the next halving, which is expected to take place on August 2, 2023. Therefore, after 77 days, daily LTC production will decrease to 3,600 LTC.
“Litecoin situation may reverse” warning
While the price increase is seen as the halving approaches, experts warn that this situation may reverse in the near future. Matrixport Research Manager Markus Thielen stated that, based on the trading patterns observed during the previous two halvings, the upcoming halving event could potentially have a negative impact on Litecoin. Thielen said that in both these events, Litecoin experienced a decline in the 50 days leading up to the halving.
Litecoin has a market cap of approximately $6.7 billion. This amount makes it the 11th largest cryptocurrency.
