Litecoin, the world’s fourth-largest digital asset by market cap, has established a positive price approach ahead of its halving, less than a month away. Just two days ago, Litecoin jumped more than 20 percent to hit $96 from its $78 mark. At this time, data from CoinGecko puts Litecoin at $98.23, trading in red at -2.64% over the last 24 hours.
A price surge in the period before a halving is not unusual but worthy of note is the fact that the Litecoin Foundation recently announced that the Miami Dolphins, an American Football team, had chosen the Litecoin as its official cryptocurrency. This means that fans and supporters would now have the opportunity to purchase the Dolphins’ 50/50 raffle using Litecoin. Bitcoin payments are also supported.
A halving is an event that reduces mining rewards on a particular blockchain by half. Litecoin’s halving, expected to occur on the 6th of August, will see blockchain rewards drop from the current 25 LTC to 12.5 LTC. When this happens, the amount of Litecoins added to the network per block would be significantly reduced, ensuring some value to the asset.
Litecoin, since the year began, has recorded gains of about 380 percent, which is expected to keep increasing as its halving is some days away. Speaking on halvings, eToro’s Senior Analyst – Mati Greenspan – has given his 2 cents on halving events on Litecoin and also on Bitcoin. During a recent interview on Bloomberg, Greenspan said:
“Every time we’ve seen a halving event in Bitcoin or Litecoin, the price has risen astronomically. So if that pattern continues, what we’ve seen so far is small potatoes in comparison. This is quite normal for the crypto market.”
The countdown to the upcoming Litecoin halving might see the price continue to increase at least until a while after the halving. Bitcoin’s halving is also expected in May 2020 and if history is anything to go buy, the price will also spike.
Analysts are of the opinion that at some point before the halving, Bitcoin could easily reach and possibly surpass its previous all-time high of $20,000.