Litecoin hash rate fell by about 40% following a drop in miner reward from 25 LTC to 12.5 LTC per block, Trustnodes notes. After peaking at around 520 terahashes per second on July 14, the value dropped to current levels of around 300 terahashes per second.
Halvening, which took place on August 5, was also marked by a reversal of the price trend of the fifth largest cryptocurrency. The gradual growth turned into a sharp jump in April, after which it continued until mid-summer, when a local maximum of about $ 150 was recorded – compared to the December minimum, the growth was about 500%. Since then, however, there has been only a constant drop, which has brought the price to its current values below $ 70..
The role of halvening-fueled attention in Litecoin’s market behavior is not easy to assess, since the cycle of rise and stagnation in the price of Bitcoin, which traditionally affects other cryptocurrency assets, almost completely coincides in time with these events..
A one-time decline in Litecoin supply in the market after halvening cannot be expected, while demand can be determined by a number of factors. Nevertheless, another thing is clear: the drop in the hash rate did not become a big problem for Litecoin, since with an average number of 25,000 transactions per day, it is almost never used..
A similar situation in the bitcoin blockchain could lead to much more sad consequences, expressed in the formation of congestion from transactions and a multiple increase in fees. So far, the bitcoin hash rate, which expects its own halvening in May 2020, is only growing, despite the lack of obvious progress in price terms. According to the Blockchain portal, the value is currently 98 quintillion hashes per second, while yesterday we reported 97 quintillion..