• LTC has emerged as one of the leading performers within the past 24 hours, surpassing the $100 mark with a notable 4.23% increase.

• Over the past month, there has been a consistent upward trend in the accumulation of Litecoin.

With Litecoin’s highly anticipated halving event just around the corner, the cryptocurrency has been generating significant excitement. Recent data from IntoTheBlock, an on-chain analytics firm, reveals that search trends for “Digital Silver” reached a yearly peak on July 12. This surge in search interest indicates substantial enthusiasm not only within the crypto community but also outside of it.

The anticipation coincides with a quadrennial event that halves miners’ block rewards, reducing the supply of tokens in circulation. Consequently, based on the principles of scarcity economics, the value of LTC is expected to rise as the tokens become scarcer. This could potentially position LTC as a valuable hedge against inflation in the future.

As per CNF data, LTC has emerged as one of the leading performers within the past 24 hours, surpassing the $100 mark with a notable 4.23% increase at the reporting time. Over the previous month, the asset has experienced significant gains, accumulating an impressive growth rate of over 28%.

 Influential Investors Boosting LTC Growth

Similar to what is commonly observed in financial markets, a positive sentiment fosters a sense of enthusiasm among investors, driving them to acquire the asset

The growing number of wallets holding less than 10 LTCs serves as evidence supporting this narrative. Over the past month, there has been a consistent upward trend in the accumulation of Litecoin, as reported by Santiment.

However, retail investors were not the sole driving force behind the growth of LTC. Large-scale investors, commonly known as whales, also participated in the movement. These influential players took advantage of their substantial profits in the initial week of July and began increasing their holdings of LTC.

LTC’s Third Halving

Similar to other cryptocurrencies that use proof-of-work (PoW) consensus mechanisms, Litecoin (LTC) halving events are determined by the number of blocks mined rather than a specific date. In the case of Bitcoin (BTC), halvings occur approximately every 210,000 blocks, whereas, in Litecoin (LTC), the mining rewards are reduced by 50% every 840,000 blocks. 

Since Litecoin (LTC) typically generates new blocks approximately every 150 seconds, its third halving event is projected to occur on August 2, 2023, at 8:35:54 p.m. UTC.

Price Surges and Peaks for LTC

Typically, the occurrence of Litecoin (LTC) halvings does not have a direct correlation with its price fluctuations. Nevertheless, the previous two halvings of Litecoin (LTC) that happened on August 25, 2015, and August 5, 2019, respectively, sparked substantial price rallies for the cryptocurrency.

During its initial post-halving cycle, the price of Litecoin (LTC) reached its highest point 28 months after the halving event. The LTC price experienced a remarkable surge, skyrocketing from $3.98 to $314, which amounted to an impressive rally of almost 79 times its initial value. In the subsequent cycle, often referred to as the “Digital Silver,” Litecoin (LTC) achieved its peak within 23 months and reached its all-time high (ATH). 

The price of LTC surged from $95 to $354, representing a substantial increase of 273%. It is worth noting that Litecoin (LTC) consistently exhibited price rallies following halvings; however, the magnitude of these rallies diminished as the cryptocurrency market matured.

The overall market capitalization of the cryptocurrency sector displayed a comparable pattern. In 29 months following the initial post-halving cycle of Litecoin (LTC), the total market capitalization of the crypto sphere surged from $4.8 billion to an impressive $848 billion. Similarly, during the second post-halving cycle, the net market capitalization of the cryptocurrency market skyrocketed from $248 billion to nearly $3 trillion within 27 months.