What will be the price of Litecoin after halving? The Litecoin network operates with a proof-of-work consensus algorithm. When a block is produced in this blockchain approximately every 2.5 minutes, miners are rewarded with a certain amount of Litecoin digital currency. To learn more about the halving process, how it works and its effect on the price of Litecoin, stay with us on the Pooyanmusic site.
After 840,000 blocks have been produced, which is a time equivalent to 4 years, the halving will happen. When halving is done, miners’ reward is halved. The halving process is part of the coin supply program that happens in all networks whose algorithm is proof of work. One of the most famous halving processes is Bitcoin halving.
At the beginning of the Litecoin network, the mining reward for each block was 50 units of Litecoin currency. The halving process continues until the year 2142, when the block production reward reaches zero. Currently, the block production reward for Litecoin is 12.5 units per block. In the first week of August in 2023, the halving process for Litecoin will take place and the block production reward will be reduced to 6.25 coins.
Litecoin is an anti-inflation asset. Over time, the supply of Litecoin decreases and as a result, this currency becomes scarce. As Litecoin becomes scarce over time, the demand for this currency increases, so Litecoin can be used as a hedge against inflation. So its price increases. Currently, at the time of writing this article, there are 84,000,000 units of Litecoin in circulation.
The Litecoin network automatically controls the emission rate. The rate for the supply was determined by consensus and voting earlier. Traders of this currency know its supply rate, so they trust it. This leads to understanding the inflation rate now and in the future at a certain point in time, the number of currencies left to be mined and the number of useful litecoins in circulation.
The price of this currency falls in a period of two years, and about three months before the halving process, this downward trend is broken and there is a price jump of 100-500% in the LTC/USD currency pair. A price correction happened one to two months before the halving.
There is a very high probability that the halving cycle of Litecoin will be repeated in this period. There is also a high probability that after the halving until March 2024, we will see a price drop to the bottom of $67 and the top of $114. In March 2025 to 2026, we will see an upward trend up to $400. It is also possible for Litecoin to rise to $1,500 at the end of 2026.
Since its creation in October 2011, this network has experienced 2 halving events. The first halving of this network happened in August 2015, in which the reward of each block was reduced from 50 units to 25 units. The second case was in August 2019, when the miners’ reward was reduced from 25 units to 12.5 units. The next Litecoin halving date is the 3rd or 5th of August 2023, and the miners’ reward will be reduced from 12.5 to 6.25 in this process.