Litecoin’s value has increased in the last seven days due to the high level of anticipation surrounding its upcoming halving event. Since January, LTC has shown impressive price movement. Although it has fallen slightly in the last 24 hours, its price increase over the last 30 days is encouraging. With this performance, Litecoin is one of the crypto market’s top gainers from the previous week. Last week, the cryptocurrency even outperformed Ethereum in terms of total address count. Let’s take a look at some of the factors influencing the price of Litecoin.
Litecoin Price Pumped By Upcoming Halving?
According to Santiment, an on-chain data aggregator, the two primary factors driving Bitcoin’s price action are increased adoption and the upcoming halving.The Litecoin community is preparing for the halving event, in which the coin’s circulating supply will be cut in half.The event would take place on August 3, 2023, according to Litecoin Halving Countdown.The halving mechanism reduces miners’ block rewards by half.
The process aims to keep a cryptocurrency’s price stable by controlling the circulating supply. On the Litecoin blockchain, block rewards are halved every four years.It is a more automated process. Because halving reduces the number of Litecoins generated by the network to approximately 84 million, miners will only receive 6.25 LTC per block rather than 12.5 LTC. With the halving, analysts predict that the price of LTC will rise even further.
Meanwhile, Litecoin adoption is increasing. Because of the low transaction cost and faster throughput, more merchants are accepting LTC as payment. LTC, a lighter version of Bitcoin, conducts low-cost point-of-sale transactions at high speeds.These features have enticed more people to use Litecoin for everyday purchases such as sending money and purchasing goods online.