Litecoin is known within the industry as Bitcoin’s little brother and in a few months it will be time for the coin’s halving by creator Charlie Lee. So far, Litecoin doesn’t seem to really benefit from that. The activity on the network is disappointing and the demand for Litecoin does not seem very strong at the moment.
Over the past week, Litecoin lost about 4 percent of its price value and is starting to lose momentum.
What is Halving?
The halving is the moment when the block subsidy for Litecoin miners is halved. This is exactly the same event that the Bitcoin community always looks forward to, because you often see the Bitcoin price start a huge increase following the halving.
In itself that makes sense, because the halving for both Bitcoin and Litecoin means that the inflation of the coins is halved. In the case of Bitcoin, the halving is scheduled for April 2024 and the block reward for miners will be halved from 6.25 to 3.125 Bitcoin per block.
So there are less and less Bitcoin in circulation, until the maximum of 21 million units is finally reached. The same goes for Litecoin, although with that coin it concerns different numbers. This year it just doesn’t seem to want to go completely smoothly with the hype around Litecoin as a result of the halving.
The hype is gone
Earlier this month, Litecoin was still doing very well and we even saw an uptick in activity on the network. That hype seemed to be explained by the halving that is scheduled and slowly but surely getting closer for the community behind the coin.
Especially in the second week of May there was a lot of demand for Litecoin, but this week the coin is mainly bearish again.
In fact, looking at the chart above, it looks like Litecoin is on its way to revisit its rising trendline.
We also can’t completely separate Litecoin’s price action, which is a bit disappointing, from the rest of the market. In principle, all coins have gone through a somewhat lesser period. Bitcoin and Ethereum are also struggling at the moment.