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According to CoinMarketCap data, litecoin is the top gainer in the last 24 hours with a 7.04% increase to $95.12.
The growing price comes in anticipation of Litecoin’s third mining reward halving.
A reduction in mining rewards
CoinMarketCap’s top gainer report highlights Litecoin as today’s top gainer, where at the time of writing it sits at $95.12 USD, accompanied by a 24-hour trading volume of $813,650,891 USD.
Litecoin, which was designed to facilitate faster and more cost-effective transactions, currently sits at a circulating supply of 73,049,777 $LTC coins and a maximum supply of 84,000,000 $LTC coins.
In addition to the 24 hour price action, @IntoTheBlock also commented on litecoin’s performance in the past month in a tweet sent out on May 30. In this tweet, the post highlights the almost all-time high in addresses with a balance (7.09 million).
Litecoin had a strong month. Total addresses with a balance has increased more intensely since the end of April and we now observe nearly 8.5 million $LTC addresses with a balance!#Litecoin https://t.co/beYBnYLzm8 pic.twitter.com/seMsdiJEup
— IntoTheBlock (@intotheblock) May 30, 2023
According to the crypto-analytic platform Santiment, the sustained growth in on-chain volume could serve as an indication that significant players in the market are starting to enter the scene with their litecoin ($LTC) investments, in preparation of the upcoming halving event.
At block 2,140,000, litecoin miners will see the mining reward undergo a reduction from 12.5 $LTC to 6.25 $LTC.
Drawing from historical patterns, this anticipated event suggests a potential scenario of decreased supply coupled with heightened demand, following the logic of market dynamics.
In a post that went out on May 22, Santiment shares,
“The LTC20 halving coming up on August 10th will be a significant event for the Litecoin network. Most experts expect the event to have a positive impact on the price of Litecoin, and we would be included in this belief.”
Understanding the pre-halving uptrend
Similar to the observed price surges during each of bitcoin’s halving events, including the most recent one in 2020, it is possible that litecoin will exhibit a comparable pre-halving upward trend.
Looking at history of bitcoin, the first official halving resulted in a pump that began nearly one year before the halving, resulting in a 341.9% increase in price, and a 112.9% increase in the second.
Although, it may be too early to say, today’s recent price action suggests that the coin is trending as expected based on halving historics.