- Litecoin’s transaction volume and hash rate have skyrocketed over the years.
- LTC has been bearish since the halving, denying whales the chance to make a profit.
Litecoin [LTC]popularly referred to as ‘Digital Silver’, it embarked on a new path of growth and adoption as it became the all-important halving event. The quadrennial event of cutting miners’ block rewards by half raised hopes of increased demand for the now-scarce LTC.
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Comparison with 2019
LTC has come a long way since its last halving on August 5, 2019. In a post on social platform X, the network’s official handle compared the network’s transaction volume in 2019 to press time. The data revealed a whopping 5x jump.
#FlashbackFriday: Comparing Litecoin with the time of the last #Litecoin halving in 2019 $LTC ⚡ pic.twitter.com/lD5ZMd7z4T
— Litecoin (@litecoin) August 11, 2023
The findings were supported by popular on-chain research firm Santiment. After the 2019 halving, the volume of LTC coins flowing daily on the network dropped drastically.
Since then, however, LTC has defied the peaks and troughs of the volatile crypto market and gained wider mainstream adoption. As a result, transaction volume peaked over the years.
Needless to say, current levels pale in comparison to the highs during the 2021 bull market, when double-digit billion-digits were recorded daily.
Source: Sentiment
Jump in hash rate
The increase in transaction volume was due to an increase in the total number of transactions, meaning more people were interested in buying and selling LTC. Of course, to trade more LTC, mining activity needs to ramp up to keep pace with demand.
As a result, another important variable, the hash rate, also increased exponentially since the last halving.
Data from Coinwarz highlighted that the hash rate jumped from an average of 300 TeraHashes per second (TH/s) in the half year to nearly 783 TH/s at the time of writing.
Source: Coinwarz
Whales looking for the tide
Major investors bought LTC in bulk leading up to the halving. This was evidenced both by an increase in the supply of the user cohort and by the spike in whale transactions.
However, the post-halving scenario was boring as most of these players found no great reason to unload their bags.
Source: Sentiment
How much are 1,10,100 LTCs worth today?
LTC has been in the grip of the bears since the halving event. Contrary to hype, the coin shredded 10% of its value as of this writing, when it traded for $83.70, according to CoinMarketCap.
It remains to be seen how long the LTC whales will play a waiting game.