Litecoin Rockets Up 14%: Halving Event & Whale Activity Fuel Surge
Overview
- Litecoin (LTC) has experienced a noticeable upswing, recording a weekly increase of approximately 14% and a daily gain of 6.8%.
- The primary factor influencing this rise is the anticipated halving event in August, accompanied by a surge in on-chain transactions and active whale movement.
- Santiment attributes these factors to increased network activity, liquidity, and larger players taking positions or adjusting their holdings.
Halving Event
The upcoming Litecoin halving event is expected to have an impact on the cryptocurrency’s value. When it occurs, miners’ block rewards will be cut from 12.5 LTC to 6.25 LTC per new block mined. This process of reducing the reward rate for mining was created by Bitcoin’s creator Satoshi Nakamoto as a way to counter inflation and increase scarcity over time. The last halving took place in 2019 and the next one is scheduled for 2027.
On-Chain Transactions
A surge in LTC on-chain transactions has been observed recently, reaching a two-year high which demonstrates increased network activity and liquidity. Furthermore, whale activity—when entities holding large amounts of LTC make transactions—has also been on the rise since the start of 2023; suggesting that larger players may be taking positions or adjusting their existing holdings.
Market Reaction
Since May 25th, Litecoin’s value has climbed nearly 14%, shifting from $83.79 to its current level of $94.57 with an intraday increase of 6.86%. This bullish sentiment can be attributed directly to the upcoming halving event combined with increasing on-chain transactions and active whale movements taking place throughout the market.
Conclusion
All in all, Litecoin (LCT)’s recent price surge can be attributed primarily to its anticipated halving event combined with increased on-chain transaction activity and heightened whale movements. With such positive developments occurring within the market space, it will be interesting to see if Litecoin can maintain its upward trajectory into August when its halving occurs – as well as beyond that date – into future periods ahead .
