Litecoin: Here’s what followed the halving event
- Litecoin’s network activity dropped as its number of transactions declined.
- LTC’s price declined sharply last week, and market indicators were bearish.
Litecoin [LTC] recently completed its third halving on 2 August 2023, reducing miners’ rewards by half. In its latest tweet, the blockchain revealed that its mining sector has been witnessing tremendous growth, with a key metric even getting close to touching a new all-time high.
How much are 1,10,100 LTCs worth today
However, a closer look at Litecoin’s network stats painted a different picture. Additionally, the halving also did not have an immediate positive impact on the coin’s price, as its chart continued to remain red.
Is Litecoin growing after halving?
Litecoin posted a tweet on 6 August, highlighting the growth of its mining sector. As per the tweet, the blockchain’s mining difficulty had touted a new all-time high of 27.05M, while its hashrate was closing in on its ATH.
Litecoin's Hashrate is currently at getting close to hitting a new all time high. Currently at 933.2 TH/s, with difficultly just touching on a new ATH. $LTC is stronger than ever!
Despite what you may read in the 'press'. pic.twitter.com/0hEgED09kd
— Litecoin (@litecoin) August 6, 2023
But, a check on its mining metrics suggested that the blockchain’s key stats were actually declining after the halving event. Coinwarz’ chart revealed that after spiking on 2 August, LTC’s hashrate started to decline. At press time, Litecoin had a hashrate of 754.29 TH/s.
Not only that, but another key miners’ metric was on a downtrend for multiple weeks. Glassnode’s chart pointed out that Litecion’s miners’ fee was dropping. The metric started to drop in May 2023, and at press time, its value was 10.5 LTC, which was a negative signal.
Apart from mining metrics, the blockchain’s network activity has also followed the same declining trend. As per Bitinfocharts’ Litecoin’s number of transactions has plummeted significantly over the last few months.
This can make the situation worse for Litecoin
If the aforementioned metrics weren’t enough, the coin’s performance on the price front gave more reasons for concern. According to CoinMarketCap, LTC was down by over 11% in the last seven days. At the time of writing, it was trading at $82.43 with a market capitalization of over $6 billion.
The declining price trend can cause a further drop in the blockchain’s hashrate. LTC miners’ rewards have already been halved, and if the coins’ price continues to decline, miners might choose to exit the blockchain to seek out more profitable options.
Realistic or not, here’s LTC market cap in BTC‘s terms
A look at LTC’s daily chart helped provide a better understanding of whether LTC’s price action can turn bullish. The Exponential Moving Average (EMA) Ribbon displayed a bearish crossover. Litecoin’s Chaikin Money Flow (CMF) registered a downtick, which was bearish.
Additionally, LTC’s Relative Strength Index (RSI) was also well below the neutral mark, increasing the chances of a continued downtrend.