Litecoin, a prominent player in the cryptocurrency market, is on the verge of its third mining reward halving, anticipated in early August. This event will cut the per-block remuneration received by miners by 50%, scaling down from 12.5 LTC to 6.25 LTC. As the 12th most substantial crypto asset based on market value, Litecoin has been experiencing substantial gains recently, nudging its price up to $92.58.
Positive On-Chain Metrics: An Indicator of Litecoin Growth
Several on-chain metrics have shifted into a favorable position in the lead-up to this significant event. According to data gathered by IntoTheBlock, Litecoin has experienced a robust month since the conclusion of April. The total count of addresses with a balance exhibited an intense surge, with 8.5 million LTC addresses having a balance last week.
Notably, new and active address counts have neared the all-time highs set earlier this year in February. For a brief period, the creation of new addresses on the Litecoin network even outpaced the establishment of new Bitcoin addresses.
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! The crypto-analytic platform, Santiment, has highlighted the trend of heightened on-chain volume, noting that if the trend persists, it could be a strong signal that major players are positioning themselves for the forthcoming halving event.Â
The team at Santiment posits, “The halving slated for August 10th is set to be a momentous occasion for the Litecoin network. We are amongst the many experts who anticipate this event to boost Litecoin’s price positively.”
Network Health: Hash Rate and Mining Difficulty
In parallel with the increasing interest, Litecoin’s hash rate has remained stable, enduring only minor fluctuations. The computational power dedicated to the blockchain saw a rise of more than 24% from 573 TH/s at the start of the year to 712 TH/s. Mining difficulty, which typically shadows the hash rate, stood at 25.12 million hashes.
The upcoming halving event has also impacted Litecoin’s futures derivatives contracts. These contracts have seen a spike of over $420 million globally, leading to a year-to-date growth of over 20%, according to data curated by Coinglass.
Consequently, the open interest in Litecoin Futures has expanded to its highest level since last year. In derivatives, open interest refers to the number of outstanding contracts.
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