LTC halving is approaching. Will LTC breakthrough?

What is LTC Halving?

The LTC halving (Litecoin) is an important event in the history of cryptocurrencies. Accordingly, the number of Litecoin rewards created per block will be halved (divided by 2). Specifically, the total number of Litecoins mined by miners per block will drop from 25 to 12.5 LTC in the next half of Litecoins. This means that after this event, Litecoin miners will receive a smaller reward, just 12.5 LTC per block. The status of Litecoin supply will be increasingly reduced, leading to upward pressure on this cryptocurrency. Some experts believe that the price of Litecoin will increase sharply before this event, due to the increased demand for Litecoin in anticipation of future price increases.

Currently, the hash rate and mining difficulty of LTC is starting to trend toward new peaks. Specifically, the mining difficulty of LTC has reached 26M, double compared to 13M a year ago and the top of the mining difficulty compared to the last halving in August 2019. The hash rate of LTC has also repeatedly broken through the peak, currently, the hash rate of LTC reaches 715 TH/s, increasing 2 times compared to the last halving in 2019.

Each LTC price halving is often chaotic. This includes a major price pump, a corresponding correction, a low price, and a rally to the top.

Is LTC undervalued?

The MVRV Z score is a model that measures the market value of a digital currency against its actual value. The index is calculated by dividing the digital currency’s market value by its actual value. In the case of Litecoin, the actual value is defined as the value of the transactions made on its blockchain.

The MVRV Z score has been used to evaluate the value of digital currencies, including Litecoin. When the index is below zero, it usually indicates that the value of Litecoin is being valued below its actual value. This could be the result of a sell-off or a lack of market confidence in Litecoin.

Conversely, when the MVRV Z score surpasses 8, Litecoin is said to be overvalued. This is often seen as the peak of the price and may indicate that the market is either too focused on Litecoin or is overvalued.

However, it should be noted that the MVRV Z score is not an absolute indicator of the value of Litecoin. It is just one of many factors used to measure the value of a digital currency. To make an accurate investment decision, it is necessary to consider a variety of factors, including economic fundamentals, techniques, and market sentiment.

What will the price of LTC halving be?

As far as observing the price of LTC before halving, the price of this coin always tends to increase sharply before officially halving. Before the LTC halving in August 2015 (the first time LTC halving), the price of LTC increased by 641% in the two months between May 2015 and July 2015, after which the price of LTC fell by approximately 70% after the halving.

By the second LTC halving, after LTC bottomed in December 2014, the price of the coin had risen about 648% by July 2015. After that, the LTC price fell by about 85% after the halving.

Currently, LTC is priced at around $90 and has increased 130% since its bottom in June 2022. This shows that LTC is less attractive to investors and miners. The growth momentum of LTC is getting worse, however, so we missed the opportunity to invest in LTC before this project started halving on August 2, 2023.

Disclaimers: Any analysis above is not financial investment advice, Spot On Chain will not assume any responsibility related to your investment.