Litecoin seems to be doing well despite the general setback in cryptocurrency. The anticipated LTC halving could be the likely reason for the rally.
Since the 11th of March, the Litecoin price (expressed in USD) has been on a positive trend, despite some minor setbacks along the road. Yet it is its price increase over the last two days that has captured the attention of cryptocurrency traders and investors.
This is due to the fact that it arrives at a time when the rest of the cryptocurrency market is taking a break from its market rebound.
How is Litecoin doing today?
A majority of the other major cryptocurrencies seem to be consolidating their positions and pulling back, while the price of Litecoin (LTC) continues to rise. Litecoin trading at $91.1 as of press time, had registered an increase of over 13% within a 24-hour duration. Whale activity seems to be on the rise as well as the trading volume surged by over 150% within the same duration.
LTC 24-hour charts | Source: CoinMarketCap
The altcoin, currently with a circulating supply of 72,543,814 LTC, has also seen a 13% increase in its market cap.
What is driving the price of Litecoin higher?
The impending halving of Litecoin’s supply in 2023 is the primary reason for the recent spike in the price of Litecoin. Cryptocurrency trader and analyst Rekt Capital published a message on Twitter today with the headline “Important not to forget about the #LTC Halving this coming August 2023.” The tweet encourages users to bear in mind that it is “important not to forget about the LTC Halving this coming August 2023.”
Litecoin and other proof-of-work (PoW) blockchains, such as Bitcoin and Litecoin, are about to experience a significant event known as the halving of the coin’s supply. This event is significant for these blockchains because it will slow down mining, which will increase the scarcity of the native tokens used by these blockchains.
Since roughly 91 percent of the blocks needed for the halving to take place have already been created, the Litecoin community is already making preparations for the halving of LTC’s supply. According to the most recent forecasts, the LTC will split in half at a block height of 2,520,000.
At the time of this publication, there were around 77,000 blocks left to reach the requisite block height.
In preparation for Litecoin halving in 2023, market analysts anticipate that LTC will continue to build on its recent upward trend. Moreover, the cryptocurrency market as a whole has been recovering since January, although this trend has waned somewhat over the course of the previous few days.