While all eyes are on Bitcoin this week to continue progress that it has made in the past weeks, a Litecoin catalyst flies under the radar that has been known to drastically increase the value of many cryptocurrencies. Litecoin is scheduled to experience a halving in 5 days. This could, depending on the health of the crypto market as a whole, be very encouraging for the Litecoin price which has had some success as of late but is still on the long road to recovery from all-time high levels in 2017.
What is a halving?
Those who have been through a coin halving before probably remember it from when Bitcoin halved a few years ago. The “halving” that occurs refers to the reward for each block that is mined. Currently, the reward for one block of Litecoin mined is 25 LTC. The current market rate for that would be about $2500. In five days, that reward will be decreased to 12.5 LTC per block. Halving increases scarcity and in some cases can have a positive affect on the price of coins.
What does it mean going forward?
Many crypto analysts and traders are waiting to see what BTC does over the weekend, but depending on the rest of the market, this could mean very good things for LTC. Ever since Charlie Lee famously sold his LTC and warned of an incoming bear cycle in the cryptocurrency markets, LTC has suffered in price. The long march back to respectable levels has only just begun with a fantastic quarter early this year. Whether or not it happens right away is yet to be seen, but LTC should get a nice bump in price as a result of the reward halving.