By: Zeng Han-Jun, Head of Research, Market Capital Research

The Litecoin halving event, which is a crucial network occurrence, will witness a reduction in mining rewards by half. Currently set at 12.5 LTC, the rewards paid out to Litecoin miners will be slashed to 6.25 LTC, signaling a transition to increased scarcity for the popular cryptocurrency.

Unlike some other protocols, the Litecoin halving happens automatically without the need for intervention from the Litecoin Foundation. The success of previous halving events in Litecoin’s history has instilled confidence in the community, bolstering the belief that this forthcoming halving might prove successful.

As of now, in the lead up to the halving, Litecoin has displayed bullish indicators, and the network has witnessed a surge in adoption, with new addresses continuously emerging over the past few weeks. Furthermore, the number of Litecoin wallets holding at least 90 LTC has been steadily increasing in recent months, suggesting a rise in adoption by significant investors.

This surge in adoption could be considered as a positive sign for LTC, as a broader investor base provides the potential for sustainable growth in the asset. Over the past period, the network has seen the emergence of over 1,000 new Litecoin addresses holding more than 90 tokens each, bringing the total number of such wallets to more than 35,000.

Historically, halving events have been linked to a bullish narrative, as they restrict the supply growth of the asset. With block rewards reduced, miners have fewer new tokens to introduce into circulation, creating a potential imbalance between supply and demand.

As for the LTC price outlook, we are projecting a price boost following the halving. At the time of writing, Litecoin’s value has experienced a marginal increase of 4.05%, currently sitting at $94.72. We expect the halving to fuel LTC’s ascent, possibly retesting its previous 52-week high of approximately $114.576. We believe that there could be the possibility of LTC nearing its all-time high (ATH) of $412.96, which could be within reach in the months following the halving event.

As the countdown begins, the cryptocurrency market awaits the impact of reduced mining rewards on LTC’s price. Whether it will bring about a surge to new highs or trigger a selloff remains to be seen, but one thing is certain: the Litecoin halving is set to be a major event that will shape the trajectory of this popular token.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.