Crypto analyst Ali Martinez has taken to Twitter to comment on the milestone achieved by the major cryptocurrency Litecoin, while the LTC halving event is just a few months away.
Here's the development that has occurred on the LTC network.
Spike in LTC active wallets detected
Martinez tweeted that the biggest surge in the number of active LTC wallets over the past two years has been detected. The number of interacting LTC addresses reached 832,000 both as senders and receivers.
Aside from that, according to the IntoTheBlock on-chain data aggregator, this year, the Litecoin network has demonstrated large growth. The number of transactions on it has increased by nearly 400%, the amount of the LTC supply held by retail users is around 50%, 60% of LTC holders are in high profit and 3,900,000 wallets have been holding LTC for longer than a year. The coin's hash rate has been up 25%, too.
This was the result of the Litecoin network adopting the LTC20 standard, which allows issuing tokenized assets on Litecoin, similar to Ethereum's ERC20. Now, developers can create DeFi, dApps, NFTs and other cryptocurrency-based assets on the LTC network.
LTC halving is 80 days away, price may jump
The Litecoin halving (or halvening, as it is often referred to as well) is to take place on August 10 this year. Halving is a programmed cut of miner rewards by half, hence the name. As in the case of Bitcoin, this is expected to be good for Litecoin, and LTC will become more scarce.
⚡ #Litecoin's #LTC20 event is rapidly approaching, with mining rewards cutting from 12.5 to 6.25 $LTC on August 10th, now just 80 days out. The latest @santimentfeed insight covers how the crowd & whales will play a factor, and the rising on-chain volume. https://t.co/VohKzdpqxy pic.twitter.com/wJo9DXNM0L— Santiment (@santimentfeed) May 23, 2023
The halving will occur on block 2,140,000, and miner rewards will drop from 12.5 LTC to 6.25 per new block, meaning that twice as few LTC will be minted with each block. This is expected to help the price of Litecoin rise, similar to the effect of halving on Bitcoin. The previous one took place in 2020, and the next one is expected to take place in 2024 — basically every four years.
At press time, LTC is changing hands at $91.83 after a rise of 3.01% over the past week, according to CoinMarketCap data.