Litecoin halving 2023: Will it impact LTC’s price in 2023?
Litecoin halving 2023: Litecoin’s block reward now is 12.5 LTC and it will be halved to 6.25 LTC once the upcoming Litecoin halving is done in 2023
Latest Litecoin News
- As Litecoin’s highly anticipated halving event approaches, its value has surged by nearly 40% over the past five days, bringing excitement to holders and generating profits
What is Litecoin halving?
Litecoin halving is an event to reduce the LTC rewards per block to half i.e., after the Litecoin halving events, users get half the number of LTC to mine each block. This event occurs once every four years.
Let us also try to understand why this halving is done. As we know that the Fiat currencies (such as dollars, euros, and rupee) allow the bank to print them and this, as a result, causes inflation. Thus, when no further money is printed, the value of the same should increase because of the increased demand.
In the case of Litecoin, LTC’s total supply is capped at 84,000,000 Litecoins. The fixed supply makes Litecoin a scarce asset and deflationary (unlike fiat currencies).
Therefore, LTC halving is scheduled to occur after every 840,000 blocks till the maximum supply is generated by the Litecoin network. Hence, the sole purpose of Litecoin halving is to preserve its purchasing power.
Litecoin halving history
There have been two halvings since the launch of Litecoin in 2011. The first Litecoin halving was done in August 2015 when the block reward got reduced to 25 LTC.
The most recent (i.e., the second one) Litecoin halving took place on 5th August 2019 and then the mining rewards were halved to 12.5 LTC per block.
When is the next Litecoin halving?
After the two successful Litecoin halvings in 2015 and 2019, the upcoming Litecoin halving is scheduled for August 4th, 2023. Following this, the block rewards will be reduced to 6.25 Litecoins.
Does halving impact price?
Note that every halving event reduces the inflation rate and thus, pushes up the price of crypto. It is simply because the decrease in supply results in increased demand. And, when the demand goes up, the prices ultimately increase.
Litecoin halving effect on LTC’s price: How high could Litecoin go?
Litecoin’s all-time high price was $377.67 which it achieved in May 2021 and it took LTC 29 months to reach that all-time high from its lowest price of $23.8. meanwhile, its price grew by 15.86 times.
Considering this 0.54 times growth in one month and its current price of $68.63, we can safely say that LTC’s price can grow as high as 32.4 times in the next 5 years. Thus, it can be expected to reach a price of $2,223 in the next five years.
Litecoin halving plays a major role to preserve its value, as discussed earlier.
However, considering the current liquidity situation and other macroeconomic factors, it is highly unlikely for LTC to grow at a similar growth rate as it did in 2021. Therefore, it is not expected to reach that value sooner.
Litecoin halving dates
|Litecoin halving dates||Block||Block reward (in LTC)|
|7th October 2011||0||50|
|25th August 2015||840,000||25|
|5th August 2019||1,680,000||12.5|
Note that Litecoin halving is scheduled to occur after every 840,000 blocks and is expected to occur once every 4 years till its maximum supply is reached. Therefore, the last Litecoin mining is expected to be completed by the year 2142.
How many Litecoins have been mined?
As of now, nearly 71,926,230 LTC has been mined which is around 86% of its maximum supply of 84,000,000 tokens.
Current Litecoin block reward
As we know that the miners get rewards for generating new blocks to the Litecoin network. Litecoin halving reduces the number of LTC rewards by 50% for the miners to verify transactions.
Note that Litecoin’s block reward, in the beginning, was 50 LTC. After two successful Litecoin halving Litecoin’s block reward now is 12.5 LTC and it will be halved to 6.25 LTC once the upcoming Litecoin halving is done in 2023.
Litecoin halving 2023: Will it impact 2023 price predictions?
The data indicate that 2022 wasn’t a great year for Litecoin because its price dropped by almost 53% since the start of the year. Though LTC’s price saw numerous fluctuations, its price still decreased to reach $68 currently.
However, as we discussed earlier, Litecoin’s halving event in 2023 can significantly impact its price in the upcoming year. From the next year, Litecoin miners will only get 6.25 LTC to verify every transaction and not 12.5 LTCs. It means that the demand for LTCs is going to increase further, which can ultimately push up the price of Litecoin.
But, looking at the previous data, it can be seen that there wasn’t much increase in LTC’s price after its halving event in August 2019.
Instead, the price got decreased after the event in August. Therefore, it is highly unlikely to predict the accurate price based on the upcoming halving event.
Nonetheless, As per the Litecoin price prediction for 2023, LTC’s price is expected to reach a maximum price level of $125 by the end of 2023, which is roughly 45% high in comparison to today’s price.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.