- Litecoin witnesses a 5x jump in transaction volume compared to post-2019 halving levels.
- Hash rate escalates from 300 TeraHashes per second in 2019 to nearly 783 TH/s in 2023.
As a central player in the crypto sphere, Litecoin, colloquially known as “Digital Silver,” recently completed its consequential halving event. This event, which occurs every four years, reduces miners’ block rewards by half, innately driving the demand due to the new scarcity dynamics of Litecoin (LTC).
Litecoin's issuance is over time, people can rely on predictable supply. This is helpful to understand what the current inflation rate of #Litecoin is, what the future rate will be at a specific time, how many litecoins are in circulation and how many are left to be mined. ⚡ pic.twitter.com/iXsx4IGBYC
— Litecoin (@litecoin) August 13, 2023
A Retrospective: 2019 vs. 2023
When tracing back to Litecoin’s previous halving on August 5, 2019, there’s a distinct difference in the network’s transaction volume. Current statistics reflect an impressive five-fold increase compared to the 2019 levels. This growth trajectory is authenticated by Santiment, a renowned on-chain research firm. Following the 2019 halving, there was a significant dip in daily transaction volumes. However, the narrative has shifted since, with Litecoin bravely navigating the tumultuous tides of the crypto market and achieving broader mainstream adoption. This is evident in the burgeoning transaction volume over the years, even if current figures aren’t mirroring the towering stats of the 2021 bull market.
Hash Rate: The Underlying Strength
The vitality of a cryptocurrency is often reflected in its hash rate. In simpler terms, a hash rate signifies the computational power of a blockchain network. A higher hash rate equates to increased security and more energy required to validate a transaction.
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A direct fallout of the rise in Litecoin’s transaction volume was the amplification in its overall transaction count. A growing appetite for buying and selling LTC necessitated a proportional surge in mining activity to meet this demand. This dynamism is evidenced by Coinwarz data, indicating that Litecoin’s hash rate shot up from a median of 300 TH/s during the last halving to an astounding 783 TH/s currently.
The Whales’ Game
Leading up to the halving, large investors, often termed ‘whales’, exhibited a growing affinity for Litecoin. This was transparently reflected in the increased supply metrics and a spike in whale-centric transactions. Nevertheless, post-halving, the fervor seemed to simmer down as a majority of these influential players discerned little rationale to disperse their holdings.
Contrary to widespread anticipation and the prevalent bullish sentiment, Litecoin experienced a 10% drop in value post-halving. As per CoinMarketCap, it traded at a modest $83.70.
As the crypto cosmos waits with bated breath, the next strategic move of the Litecoin whales remains enveloped in anticipation.
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