Litecoin bulls and bears continue to battle for supremacy on the price charts. Its price remains stagnant around the $65 level this week on 19 August. The third edition of Litecoin’s halving took place when the network reached a block height of 2,520,000, which reduced miner’s rewards from 12.5 LTC to 6.25 LTC. This reduction in supply could trigger increased demand and speculative activity in the cryptocurrency market.
Having is a significant event programmed into certain cryptocurrency protocols, including Litecoin. During this event, the block reward given to miners for validating transactions and securing the network is reduced by half. The primary purpose of having is to control the issuance rate of new coins and manage inflation within the cryptocurrency system. The impact of having is twofold. First, it introduces an element of scarcity into the cryptocurrency ecosystem, potentially leading to an increase in demand. Second, it affects the mining rewards for miners, resulting in decreased mining profitability.
Litecoin’s emphasis on faster transactions and lower fees is likely to attract more users and investors as transaction volumes increase. On the other hand, Dogecoin’s inflationary nature and concerns about dilution may favor Litecoin in the short term. Ethereum Classic’s focus on immutability and Coda’s law principles might attract a distinct audience compared to Litecoin’s user base. The short-term advantage for each cryptocurrency would depend on specific use cases and the preferences of users and investors.
Recent regulatory scrutiny against various cryptocurrencies has impacted various altcoins negatively. However, Litecoin’s classification as a commodity by the U.S. Commodity Futures Trading Commission (CFTC) could potentially lead to increased institutional interest and investment. This could have a positive impact on its price.
At press time, LTC was trading at $66.06. While its relative strength index and money flow index rested below the neutral 50 mark, its on-balance volume didn’t show a positive sign. Litecoin’s unchained metrics suggest that a possibly bearish price movement is on the way.
