Litecoin (LTC) is now the fourth-largest cryptocurrency by market cap overtaking Bitcoin cash after its halving at 10:16 UTC on Monday, August 5, 2019. Litecoin’s price has also picked up pace hours after the halving which has placed it in double digits. But let’s see what could potentially happen in the Litecoin market days or months after this halving.
Litecoin Gains Significantly Shortly After its Halving
As of press time, Litecoin is valued at $100.06, which is a 7.17 percent increment in the virtual asset’s price in 24 hours. However, a look at CoinMarketCap’s chart shows that an hour after its halving, Litecoin surged to $104.36 precisely at 11:44 UTC +1:00 which is a significant increment from its $93 opening price today. Litecoin’s market cap of $5.8 billion as of yesterday now sits at $6.3 billion which ranks it above Bitcoin Cash, previously the fourth top crypto asset.
These leaps in LTC’s price and market cap can largely be attributed to the just-completed Litecoin halving which was scheduled for today. What does this mean for Litecoin? The reward miners will get for verifying and adding Litecoin transactions to its blockchain has been halved from 25 LTC to 12.5 LTC.
Amount of Litecoin Supplied to the Market Halved
As a consequence, the amount of Litecoin that will circulate the crypto market will significantly reduce. For instance, out of 84 million LTC that will ever be mined, 63 million (75%) are already in circulation. Thus, it’s left with about 20 million Litecoin before this limit is hit.
What’s more important is that the remaining 20 million will not be supplied to the market at the same rate as before. Instead of 14,400 LTC daily, it will now be 7,200 LTC. Also, a total of 10,498,650 will be supplied before Litecoin’s next halving on August 2, 2023 (839,892 blocks away), which could lead to a positive turnout of events.
Expectations in the Coming Months for Litecoin
For starters, halvings have always increased the price of a crypto asset, and the same is expected for Litecoin. Prior to the halving, LTC’s opening price on January 1, 2019, was $30.46. Despite Bitcoin’s steady movement earlier in the year, LTC still experienced huge gains.
If this positive result was attainable before the halving mainly due to speculation, then a lot more can be expected in the coming days or months now that there is a shortage of supply of LTC in the market. There’s also an increased difficulty in mining Litecoin to trigger a price spike soon.
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