The Litecoin (LTC) network has officially experienced its third block reward halving at block height 2,520,000, with LTC rewards diminishing from 12.5 LTC to 6.25 LTC. Thus far, the halving has not propelled LTC prices upwards as market data reveals LTC has declined over 4% in the past 24 hours.
Halving Unshaken: Litecoin Network Sees Third Reduction in Rewards
On August 2, 2023, the Litecoin (LTC) blockchain documented its third block reward halving. Litecoin’s first halving transpired on August 25, 2015, at block height 840,000, and the second occurred on August 5, 2019, at block height 1,680,000.
The most recent reward halving, happening at block height 2,520,000, has reduced the reward from 12.5 LTC to 6.25 LTC. Prior to this halving event, LTC miners generated 7,200 new LTC units each day; that rate has now fallen to 3,600.
LTC prices have decreased by over 4%, but they remained stable with a minor 0.2% increase throughout the previous week. At that point in time, LTC miners received roughly $656,919 daily in LTC rewards; this figure has now been cut to $331,946.
The data undeniably demonstrates that LTC miners faced a considerable loss in revenue following the automated halving completion. Litecoin’s annual inflation rate has plunged from 3.64% to the present figure of 1.80%; by the next halving event, it is expected to decline further to 0.84%.
Litecoin’s current annual inflation rate is marginally higher than Bitcoin’s rate of 1.70%. However, Bitcoin’s inflation rate will alter in just 268 days during its upcoming halving event; Litecoin must wait for another 1,458 days until its subsequent halving.
Following Bitcoin’s halving, scheduled for on or around April 26, 2024, the yearly inflation rate will descend to 0.84%. At present, Litecoin’s total hashrate remains relatively consistent, cruising at 834.16 terahash per second (TH/s).
Approaching the Litecoin halving, the hashrate surged two months earlier, culminating in an all-time peak of 1.03 petahash per second (PH/s) on July 4, 2023, at block height 2,503,485. This security of hashrate persists post-halving; only time will reveal if reduced revenue compels the hashrate to depart.
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