Simon Ng Litecoin Finalizes Its Third Reward Halving, Reducing Rewards to 6.25 LTC; Dip in Prices Leads to Revenue Loss for Miners as Value Falls 4%
The Litecoin (LTC) blockchain has now officially undergone its third block reward halving, at block 2,520,000, reducing the LTC mining reward from 12.5 LTC down to 6.25 LTC. Contrary to some expectations, this halving has not had an uplifting effect on LTC prices, with a noticeable market dip of more than 4% within the last 24 hours.
Unfazed by the Halving: Litecoin Network Witnesses Third Consecutive Reward Cut
August 2, 2023, marks the day when the Litecoin (LTC) network registered its third block reward halving. The inaugural halving for Litecoin took place on August 25, 2015, at block 840,000, followed by a second halving on August 5, 2019, at block 1,680,000.
With the latest halving event occurring at block 2,520,000, the rewards have dropped from 12.5 LTC to 6.25 LTC. Before this halving, Litecoin miners created 7,200 new LTC units daily, a figure that has now halved to 3,600.
Despite a more than 4% drop in LTC prices, they remained relatively stable with a minor 0.2% rise throughout the preceding week. Prior to the halving, daily LTC rewards brought in about $656,919 for the miners, a figure that has now been slashed to $331,946.
This information clearly indicates a significant revenue loss for LTC miners in the wake of the automated halving completion. The annual inflation rate of Litecoin has taken a steep fall from 3.64% to its current 1.80%, and by the time the next halving rolls around, it’s projected to drop even further to 0.84%.
Currently, Litecoin’s annual inflation rate is slightly above Bitcoin’s at 1.70%. However, this rate will change in the next 268 days when Bitcoin undergoes its upcoming halving. Meanwhile, Litecoin will have to wait another 1,458 days for its next halving.
Bitcoin’s forthcoming halving, projected to take place around April 26, 2024, will lower its annual inflation rate to 0.84%. At the moment, Litecoin’s total hashrate remains fairly steady, measuring at 834.16 terahash per second (TH/s).
In the lead-up to the Litecoin halving, there was a spike in the hashrate two months prior, peaking at an unprecedented 1.03 petahash per second (PH/s) on July 4, 2023, at block 2,503,485. This stability of the hashrate continues post-halving; only future developments will determine whether the decreased revenue will cause the hashrate to drop.
What are your thoughts on the third Litecoin reward halving? We invite you to share your perspectives and insights on this topic in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Litecoin Reward Halving
What is the new reward for mining Litecoin after the third halving?
The new reward for mining Litecoin after the third halving is 6.25 LTC.
What is the impact of the third Litecoin halving on miners’ revenues?
The third halving of Litecoin has significantly reduced miners’ revenues, as the reward for mining has halved from 12.5 LTC to 6.25 LTC, and the value of Litecoin has dropped by 4%.
How has the Litecoin halving affected its price?
Contrary to some expectations, the Litecoin halving has resulted in a decline of over 4% in its price within the last 24 hours.
What will be the projected inflation rate of Litecoin after the next halving?
The projected inflation rate of Litecoin after the next halving event is expected to decrease to 0.84%.
When is the next halving event for Litecoin and Bitcoin?
Litecoin’s next halving is expected in about 1,458 days. In contrast, Bitcoin’s next halving will take place in approximately 268 days.
More about Litecoin Reward Halving
- Understanding Litecoin Halving
- Impact of Litecoin Halving
- Bitcoin Halving Explained
- Comparison Between Litecoin and Bitcoin
6 comments
its all part of the game. Miners knew what they signed up for. In crypto, we trust!
Remember guys, long term! This is just a small dip, just you wait n see. Buy the dip!
Man, these halvings always make me anxious. It’s like you never know where the price is gonna end up…
It’s interesting to see how this affects the overall inflation rate. definetly keeping an eye out for the next Bitcoin halving,
Oh dear, a 4% drop. Time to stock up more LTC! 😉
Tough for the miners, huh? they’ve got the worst part of it.. still, gotta keep the faith in LTC!