Litecoin cryptocurrency increased sharply in the first six weeks of 2019. Experts say that the price jump may be associated with a quick halving of a crypto-asset, as was reported by the CoinDesk news agency.
Over the past few weeks, Litecoin has grown to $ 44 per coin. At the same time, last week, the cryptocurrency reached its maximum in the amount of $ 47. According to CoinMarketCap statistics, since the beginning of 2019 Litecoin has grown by 56%.
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Litecoin price increase and coin halving
Halving is a process of increasing the complexity of cryptocurrency miningMining
– is a type of activity for creating new blocks in the Blockchain to ensure proper system operation. Details by reducing the remuneration for miners (exactly twice). Halving and regulation of the production of crypto-coins are necessary to control emissions.
CoinDesk information agency reports a statistical correlation between the rising cost of cryptocurrency and its approximation to halving. Recall that on August 8, 2019, the remuneration for LTC miners will be halved. So, for example, today the reward for one block is equal to – 25 LTC. After halving, the amount will be reduced to 12.5 LTC.
Litecoin's capitalization ranks fourth in value among all the cryptocurrencies of the world. Currently, the average price of LTC tokens is $ 44. Recall that in December the cost of LTC did not exceed the limit of $ 20.
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The rapid increase in asset prices is associated with relatively fast halving cryptocurrency. Based on empirical arguments – the price will change. Past Litecoin halving distinguished by similar indicators. A year before the second halving (2014), the average cost of the tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details was $ 1.12. Then, in January 2015, it reached its maximum of $ 8.72. By mid-July, the price again fell to 4 dollars. At the same time, the coin halving was planned for August 25, 2015.
Litecoin cryptocurrency increased by 56%, many believe that halving may not affect the LTC price. Moreover, looking at such statistics, it is easy to assume that this year the scenario will be repeated. The recent increase in the price of Litecoin is almost identical to the price movement in the winter of 2015. Then, as now, the coin rose by more than 50% and in just a few weeks crossed the boundaries of the downward (bearish) trend (for the last 12 months).
Editor: Yulia Krasnaya