Litecoin Jumps as it Halves

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Litecoin meme

Litecoin has risen by about 10% today from circa $94 to a brief $107 before standing at $102 at the time of writing.

That’s on increased unfiltered volumes of circa $3.5 billion, with the copy clone of bitcoin once more seeing some green.

Litecoin price, August 5 2019
Litecoin price, August 5 2019

Litecoin has been up and up since December, rising by about 7x to $140 in June before then halving to $70 last month, to then turn green again.

The mini-bull run to June was primarily due to the Litecoin halvening which has now been completed.

At block 1,680,000, found at 3AM London time this Monday, miners were given only 12.5 LTC, slashed in half from the 25 LTC they received the previous block.

This is only the second halving for litecoin, with it performing today what bitcoin did in 2016.

Like bitcoin, litecoin too has a fixed limit of 100 million algorithmically set with bitcoin itself now to undergo its own halvening in spring when rewards are to be reduced from ₿12.5 to ₿6.25 to keep in line with its limit of 21 million bitcoins.

This slashing of supply might lead to more pressure for the price as scarcity has just increased, but save for attempts at pricing in, effects are unlikely to be felt for a few weeks or months.

That’s because there may be residue holdings by miners who sell to cover costs. That residue gradually halves, with it then reflected on the price.

Yet what will happen with litecoin remains to be seen as the crypto community starts thinking more and more about what will happen to bitcoin when it halves for the first time since it went mainstream in awareness.

Copyrights Trustnodes.com

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