According to a tweet posted on Sunday, March 5, Litecoin’s highly-anticipated halving event is set to take place in the next 150 days. This means that the latest and third halving of Litecoin cryptocurrency will happen on August 4, 2023.
Litecoin halving is a major event that occurs when the reward for mining LTC transactions is slashed in half. The event, which takes place once every four years, reduces the rate at which new coins are produced and thus lowers the available amount of new supply, even as demand rises. The purpose of the halving is to preserve the purchasing power of the crypto asset.
Previous Pre/Post Halving Events Hint LTC Price To Rally
Since Litecoin’s launch in 2011, two major halving events have occurred for the crypto asset. The first one happened in August 2015, which slashed its block reward from 50 LTC to 25 LTC. The second one which happened in August 2019, reduced the 25 LTC reward to 12.5 LTC.
The upcoming Litecoin halving which would be third in history, slated to take place in August 2023, would reduce the current block reward of 12.5 LTC per block further down to 6.25 LTC per block.
Litecoin halving is an event to remember because it contributes to LTC scarcity and deflationary. The number of Litecoin mined per block will continue to reduce by half, roughly every four years, until the current supply of 84 million LTC is mined. This is anticipated to occur sometime around 2144.
The previous two consecutive halving events had contributed to the altcoin’s price surge. A 50% drop in the number of Litecoin minted resulted in an uptick in the asset’s value.
Based on the past price analysis, the previous two halving events occurred after a volatile LTC price cycle associated with a massive price spike, followed by a huge correction, a price decline, and a recovery to a price surge.
After the events, LTC’s price corrected from its high creating another bottom and followed it with another huge price rally to a new record high.
Market analysts expect Litecoin price to go through the same trajectories associated with the 2015 and 2019 halving events.
Litecoin Price Action
The halving announcement comes when Litecoin price is trading low amidst the recent crypto downtrend triggered by negative news about Silvergate insolvency issue.
At the time of writing, Litecoin is currently trading at $87.99, down 3.13% in the last 24 hours and 7.70% down in the last seven days.
The trading volume of LTC has been $415,444,930 in the last 24 hours, representing a 6.50% increase from the previous day, showing a recent uptick in its market activities.
Litecoin reached its highest price of $410.26% on May 10, 2021, which means the current price is down 78.60% from its all-time high price.
LTC’s current market cap is $6,372,049,864, meaning that the crypto is ranked #13 among the largest crypto assets by market cap, according to Coinmarketcap.
With a price decline of 7.70% in the last seven days, LTC is underperforming the global crypto market, which is currently down 4.90%, while Bitcoin is down by 5%.