On Wednesday, the price of Litecoin (LTC), the blockchain’s native asset, fell precipitously, reaching its lowest level in a month. Following the much anticipated “halving” incident, the cryptocurrency’s value dropped to as low as $86, a level not seen since June 30.
Similar to Bitcoin halvings, Litecoin’s halving included halving the payouts for miners, essentially decreasing the creation of new coins. This process took place about every four years. In contrast to Bitcoin’s behavior, LTC, which is sometimes referred to as “digital silver” in the crypto world, has previously undergone peaks and troughs before its halving occurrences.
Litecoin’s price dropped by around 6% during the day, behind both Bitcoin (BTC) and the larger cryptocurrency market as measured by the CoinDesk Market Index. While the market index and Bitcoin both fell by 0.5% and 0.8%, respectively, Litecoin saw a bigger decline.
The value of the cryptocurrency peaked just before to the halving event and subsequently fell during the next months during this specific half cycle for LTC. On the other hand, following halvings, Bitcoin often increased in value. The previous Litecoin halving years saw the token hit a top four to six weeks before the event, then decrease leading up to the halving, and then find a bottom following the event, according to Greg Cipolaro, the global head of research at digital asset investing company NYDIG.
This pattern continued with the current Litecoin halving, as LTC surged to its highest price of the year on July 3 at $112, or around a month before the halves. But since then, its value has fallen by 22%, deviating from the pattern seen with Bitcoin price halvings.
Market analysts are still keeping a careful eye on Litecoin’s performance to see how it could change after the recent halving event. Investors and enthusiasts will closely monitor LTC’s future trajectory to comprehend its potential as an investment and its position in the larger cryptocurrency market as the landscape of digital assets continues to change.
