Litecoin (LTC) is getting closer to its second halving that is expected to happen on August 5 this year, just 35 days and some hours away at the time of writing. The main question that users are asking on social networks is whether the digital asset is going to experience a price increase as it happened back in 2015 when it halved for the first time.
Could Litecoin Surge In Second Halving as it Did During the Last Halving?
Litecoin is the fourth largest cryptocurrency after Bitcoin (BTC), Ethereum (ETH) and XRP and it has been operating in the market since 2011 when it was founded by Charlie Lee. As most of the proof-of-work virtual currencies, Litecoin is expected to be reducing the new issuance of coins on August 5, 2019.
Currently, the Litecoin network has an inflation rate of 8.78 percent that is expected to drop to 4.26 percent during the next four years after the halving event takes place. Litecoin miners are going to be rewarded for their work with 12.5 LTC per block rather than 25 LTC per block as they receive now.
With a sustained or increased demand for the digital asset, the price of this digital currency is expected to grow in the long term. Back in 2015 when Litecoin halved for the first time, the digital currency surged from $1.34 per coin to over $7, which represents a price increase of over 400 percent in just a few months before the halving.
Now, Litecoin has been growing since it bottomed in December 2018 and it has already grown over 400 percent as well since that moment. If Litecoin repeats the same performance experienced in 2015, the digital currency could move to over $300. However, this seems very unlikely, at least from the current market perspective.
It is worth mentioning that Litecoin is the best performing digital asset among the top 30. This comes in a day in which Bitcoin (BTC) is losing almost 8 percent of its price and Litecoin maintains its position with a small drop of 0.4 percent in the last 24 hours.
Litecoin has also expanded before the last halving when measured in terms of BTC. The digital currency moved from 0.0061 BTC to 0.0284 BTC in just two months.
At the time of writing this article, Litecoin is being traded around $131 and it has a market capitalization of $8.2 billion.