The Litecoin hash rate fell by about 40% following a decline in the miner's award from 25 LTC to 12.5 LTC per block, points out Trustnodes. After reaching a peak of about 520 terraces per second on July 14, the value fell to current levels of about 300 terra-hash per second.
Halvening, which took place on August 5, was also marked by a reversal in the price trend of the fifth largest cryptocurrency. Gradual growth turned into a sharp jump in April, after which it continued until mid-summer, when a local maximum of about $150 was recorded - against the December minimum growth was about 500%. Since then, however, there has been only a constant decline, which has led the price to its current values below $70.
The role of Halvening's attention in Litecoin's market behavior is not easy to assess, as the cycle of Bitcoin price rise and stagnation, which traditionally influences other cryptocurrency assets, almost coincides with these events.
We cannot expect to see a one-time drop in Litecoin's supply in the market after halvening, while demand can be determined by a number of factors. However, another thing is clear: the decline in hash value has not become a big problem for Litecoin, as it is almost not used with an average number of transactions of 25,000 per day.
A similar situation in blockchain could have led to much sadder consequences, such as transaction congestion and a multiple increase in fees. So far, the hash rate of Bitcoin, which expects its own halvening in May 2020, has only increased, despite the lack of obvious price progress.
What do you think will bitcoin increase in price before halvening? or we will go to another red year?