Cryptocurrency Litecoin surpasses $ 100, background of soaring

litecoin skyrocket

Against the backdrop of the imminent half-life, the price of the crypto asset (virtual currency) Litecoin (LTC) has risen significantly. It has surged 27% in the last 24 hours and is currently trading at $108 per LTC. It is up 45% year-to-date (as of May 1).

LTC USD chart (weekly) Source: Trading View

Litecoin’s hash rate, an indicator of blockchain processing power, is hitting all-time highs. The metric has nearly doubled in the past year, according to BitInfoCharts, most recently hitting a new high of 797.5 terahashes per second last Tuesday.

Litecoin’s next halving is scheduled for August 3, 2023, according to calculations by BitDegree. Halving is an event where mining rewards are halved. To prevent inflation, Litecoin is set to halve the amount of LTC granted as a reward to miners every four years (every 840,000 blocks).

The August 2023 halving will reduce the mining reward for Litecoin miners from the current 12.5 LTC per block to 6.25 LTC per block.

The current market value of Litecoin is $7.9 billion (approximately ¥1.1 trillion), making it the 10th largest in terms of market size. The coin has a maximum supply of 84 million LTC and currently has 73.26 million LTC in circulation.

connection:Litecoin Halving Scheduled Around August 7th, On-Chain Data Suggests Major Investor Trends

Listed on EDX Markets

Halving events often draw attention along with the topic of price increases, as they have the effect of increasing the scarcity of a currency. This shift in the underlying balance of supply and demand could potentially benefit investors.

Litecoin also appears to be fleeing from the SEC (U.S. Securities and Exchange Commission) regulatory move. Although the SEC has not stated the classification of Litecoin, at least the “unregistered securities” that the SEC has pointed out so far include blocks that adopt the proof-of-work (PoW) method like Bitcoin and Litecoin. Chain-based cryptocurrencies are not included.

PoW-type virtual currencies represented by Bitcoin have no issuers and their profits do not depend on the factors of individuals or companies, so they are not securities but are regarded as “commodities” such as corn and gold. There is a view that it will be

It is judged that the regulatory pressure on Litecoin has eased, and the evaluation of Litecoin by market participants, including institutional investors, has increased, which may be driving the price increase. EDX Markets, a new U.S. cryptocurrency exchange aimed at institutional investors, has included Litecoin as a trading currency since its launch on June 20, 2023.

connection:EDX Markets, a virtual currency exchange funded by Wall Street Financial, opens in the United States

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