• Litecoin is set to have its third halving event in August, reducing its per-block reward by 50%.
• The total address count with a balance has increased significantly since the end of April.
• With increased on-chain volume, it appears that big players are beginning to invest in LTC in anticipation of the upcoming halving.
Litecoin Halving Event
Litecoin is scheduled to undergo its third mining reward halving in early August. This event will result in lowering the per-block reward paid to miners from 12.5 LTC to 6.25 LTC. This has caused Litecoin’s price to pick up momentum and reach $92.58 at the time of writing this article.
Increased Network Activity
Data from IntoTheBlock suggests that since the end of April, there has been an increase in new and active addresses on the Litecoin network, reaching 8.5 million LTC addresses with a balance last week and briefly surpassing new Bitcoin addresses being created during this same period. According to crypto-analytic platform Santiment, if this trend continues it could be a sign that big players are beginning to invest in Litecoin for the upcoming halving event.
Positive Price Momentum
Litecoin’s price has seen some positive momentum leading up to its August halving event due to investors anticipating these rewards and seeing potential value growth post-halving event. As such, it appears that many investors are now investing or putting their funds into Litecoin leading up to the August event as they expect prices may continue increasing after the halving occurs because of reduced rewards and therefore decreased supply on the market over time due to reduced mining activity post-halving event.
What Does This Mean?
It looks like many investors are expecting great things for Litecoin after this upcoming halving which suggests optimism for potential gains following this event due to increased demand but fewer rewards being paid out as miners move away from mining litecoins once their rewards get cut by half post-halvening; resulting in a decrease in supply over time causing prices potentially increase further than they already have so far leading up shortly before or after the August 2020 Halvening date arrives!
Conclusion
In conclusion, we can see that Litecoin’s network activity has been increasing significantly ahead of its upcoming third halvening taking place later this year which could suggest that big players are coming into play and investing their money into litecoins as they anticipate potential value growth post-halvening; resulting in positive price momentum leading up until then as well as potentially afterwards too depending on how things go when it actually happens!