With the new supply of coins to be halved in less than five weeks, litecoin is dominating its rivals.
The fourth-largest crypto by market capitalization is at the right now trading at $123, representing 5 % good points on a seven-day foundation, in response to data supply CoinMarketCap.
In the meantime, bitcoin, the highest cryptocurrency by market worth, is presently reporting a meager 1 % to achieve on a weekly foundation.
Litecoin’s current comparatively shining efficiency could be related to the mining reward halving due on Aug. 6 this year.
The method is aimed toward curbing inflation by decreasing the cash paid out for mining on litecoin’s blockchain by half. So, after Aug. 6, miners will get 12.5 money for each block mined – down 50 % from the present reward of 25 cash.
Primarily, miners will likely be including cash to the ecosystem, seemingly resulting in much less in circulation. The approaching provides minimize may need helped LTC outperform its peers within the last seven days.
Whereas it’s logical to count on the cryptocurrency to raise additional within the run-as much as the occasion, the upside seems restricted. In any case, LTC has already witnessed phenomenal development in each worth and non-value metrics to date this year and is at present up greater than 300 % on a year-to-date foundation.
In the meantime, litecoin’s hash rate, or computing power dedicated to mining, rose to a report excessive of 468.1019 TH/s this week. Notably, the metric is at the moment up 220 % from the low of 146.2118 TH/s seen in December.
All-in-all, the market could have largely priced within the reward halving already. If history is a piece of information, the likelihood of LTC witnessing a sharp pullback within the run-as much as the Aug. 6 event is high.
It’s price noting that LTC had nosedived from $8.72 to $2.55 in 6.5-week’s primary as much as the earlier reward halving, which happened on Aug. 25, 2015.