One of the most important altcoin developments of 2023 was the block reward halving of Litecoin, which occurred at the time of writing. Halving means more upward movement for Bitcoin. However, for Litecoin, which has undergone its third halving, the results will be different. Let’s examine the details of the new block rewards and price expectations.
Introduced as a “fork” of Bitcoin and considered as the silver to the cryptocurrency, Litecoin operates with a PoW consensus mechanism. Similar to Bitcoin, miners ensure the security of the network and receive rewards per block along with transaction fees. Through halving, Litecoin reduces block rewards every 840,000 transaction blocks (approximately every 4 years). Each block takes about 2.5 minutes.
The network, which has experienced two previous halvings, completed its third reward halving today around 18:06. As a result, the rewards decreased from 12.5 LTC to 6.25 LTC. After four years, the current block reward will be halved again. This way, the network continuously reduces its inflation by limiting new coin supply.
Charlie Lee, the founder of Litecoin, says that these deflationary halvings help mass adoption without compromising the network’s security.
“Satoshi chose a four-year block halving to give the network enough adoption time to sustain itself with just transaction fees. The idea here is that as long as the network is sufficiently used, transaction fees should be enough to continue incentivizing miners to secure the network.”
In the previous two halving periods, the price dropped after approaching and following the reward halving. This time, the situation was different. LTC attracted significant attention from miners and whales as the halving day approached. However, at the time of writing, a “sell the news” situation occurred. The LTC price is currently at $89, experiencing a 4% decrease.
If the same thing that happened in the previous two halving periods repeats, we may see the price drop to $68 and $51 after losing $87.19. On the other hand, a close above the $97 resistance is needed for the opposite scenario. In this case, the price could experience a significant increase up to $200 after reaching $102 and $120.