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The movement of cryptocurrencies can be anything but predictable. The volatile nature of these digital assets is something that sets the blockchain industry apart from others. For instance, BTC, which was trading at its all-time high last year is currently trading at the $16,500 level, more than 70% lower in value. However, prices can go upward too, of which LTC is an excellent example. Litecoin has pumped even in this market condition thanks to the news regarding its upcoming halving event.
Altcoins have had a rather shaky price movement for the past couple of months. While prices had started stabilizing gradually, the latest FTX debacle ended up causing a further downside movement. But crypto tends to change its course when exposed to major announcements or developments. Litecoin did the same, as it managed to pump despite the bearish price actions other tokens were recording.
What is Litecoin?
Litecoin is one of the most popular cryptocurrencies that was founded by Charlie Lee, a very popular name in the cryptocurrency industry. Charlie Lee was a former Google employee, who created the token to act as a lite version of the original project Bitcoin. As a senior employee in the Coinbase exchange, he had intended for Litecoin to have strong utility and fundamentals.
As mentioned above, the cryptocurrency was created based on the Bitcoin protocol but differs in terms of the hashing algorithm used, hard cap, block transaction times and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments. Since its inception in October 2011, the project has made its way to several major organizations.
It is currently one of the most widely accepted cryptocurrencies, with more than 2,000 merchants and stores accepting the token globally for business.
What is Litecoin Halving?
The idea of Litecoin is almost similar to BTC, which can be compared to a kind of digital gold. Litecoin, like Bitcoin, has a fixed supply, which means that it is an inflationary cryptocurrency. Unlike fiat currencies that can be printed wantonly by governments, Bitcoin cannot exceed in quantity. This is one of the main reasons why the idea of these tokens is so popular. They are a direct hedge against inflation or its effects and can help in economic stability even at the micro level.
The maximum supply of Litecoin is 84 million and is mined by individuals or organizations globally. Now, mining this token gives responsible people or organizations rewards. These rewards are in the form of LTC tokens. Initially, Litecoin used to reward the miner with 50 LTC tokens per block. But this has decreased considerably over the years since Litecoin halving takes place every 4 years. The upcoming halving is supposed to happen on 13th August, 2023.
A Litecoin halving simply means that LTC rewards given to miners will be cut in half. This means that since the value of Litecoin may go up in the future, the amount of rewards miners can get per block will also keep getting lesser. Currently, the reward amount stands at 12.5 LTC. However, after the upcoming halving event, this will be changed to 6.25 LTC. This process is expected to go on till 2124.
Price history of LTC token
The price movements of LTC can be closely compared to the changes that are seen in BTC. However, one thing to notice when looking at the price history of LTC is the effect of halving. Litecoin has gone through two halving events, one in 2015 and the other in 2019. On a closer look, it will be evident that LTC has historically spiked in price whenever a halving was to take place.
For instance, the first LTC halving was on 25th August 2015. The price of LTC, which was at around $1.4 towards the start of the year had managed to pump to more than $7 before August, due to anticipation of the event. This itself is an indicator of how such a massive project development could affect a particular cryptocurrency.
The second halving also followed the same route. LTC was trading at around $34.34 before the excitement among investors for the halving event in August 2019 caused it to spike up. By the time of the halving event, LTC was in the $120 level already. As such, both halving events had seen LTC moving in an extremely bullish direction.
LTC Price Prediction
It goes without a doubt that Litecoin is a strong project. It is already embraced by top companies globally and could see mass adoption in the upcoming years. Investing in the project can be a smart way of earning great returns. The halving event could also be a good indicator of the project’s further growth as seen before.
While it seems like an easy option, buying LTC and solely relying on past movements may not be a smart move. This is mainly because while the crypto industry may still be in its infancy, it has surely gone mainstream. Movements of these assets are now known to a wider audience, which could change the way LTC moved before.
However, the token has already risen from around $54 to the $70 level and is highly likely to have done so due to the event. Thus, while it cannot be speculated accurately, one can still bank on the possibility of LTC potentially moving up to the $90 level. As such, it can be considered to be a great investment option.
Conclusion
Litecoin’s movement may be volatile in the short term. But the project’s quality and developments may ensure great returns for whoever invests in it. A project that needs to be on everyone’s watch list is Dash 2 Trade. This is because it is a newly introduced crypto analytics and social trading platform. LTC’s movements and other developments can be recorded and viewed in real-time using one of Dash 2 Trade’s chief offerings. It also allows several other features, making it an investment choice as good as Litecoin.
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