Litecoin [LTC], the digital silver to Bitcoin’s digital gold made a comeback last year with MimbleWimble and abrupt price rises. Now, the asset is once again creating a buzz thanks to its upcoming halving event. Litecoin halving is a recurring event that takes place every four years. This is akin to the Bitcoin halving, which follows a similar schedule. In August 2023, Litecoin is expected to undergo its third halving event. This will result in the block reward being cut in half from 12.5 LTC to 6.25 LTC per block.
It should be noted that the first Litecoin halving occurred in August 2015, when the block reward was reduced from 50 LTC to 25 LTC per block. The second halving occurred in August 2019, when the block reward was reduced from 25 LTC to 12.5 LTC per block. As the community preps for the third halving, a possible surge in the price of the altcoin is also anticipated.
Can LTC surge even before the halving?
At press time, LTC was trading for $79.25 with a 2.65% daily drop. The asset is currently 80.81% below its all-time high of $412.96. The halving event is expected to revive the price of the cryptocurrency.
Historically, Litecoin halving has been associated with a bullish trend in its price. In the months leading up to the halving, investors tend to buy more Litecoin in anticipation of a supply reduction, which drives up the demand and price. This could further lead to a potential pump even before the halving event occurs.
After the halving, there is usually a short-term price correction, followed by a gradual upward trend. This time around, there is a growing sense of optimism within the Litecoin community regarding the potential for the price of LTC to rise. Charlie Lee, who is the creator of Litecoin, recently shared his thoughts and predictions about the future of LTC in the upcoming months. He said,
“I can see an upside target of 10% (0.025 LTC/BTC). In the next bull market, 5% (0.0125) shouldn’t be too hard to achieve. I honestly don’t see it going much below 1% (0.0025) on the downside. The next halving will be in ~92 days. This is going to be fun.“
A few others noted how the asset could even reach $1000 post-halving.
Litecoin halving is undoubtedly a pertinent event. While past performance is not a guarantee of future results, the historical data suggested that the Litecoin halving has had a positive impact on the price of the asset.