• Litecoin (LTC) has seen a 14% increase in value over the past week and 6.8% in the past 24 hours.
• The surge is attributed to the upcoming halving event, increased on-chain transactions, and active whale activity.
• Santiment data analytics firm identifies these three factors as key drivers of the recent LTC price appreciation.
Litecoin’s (LTC) Price Appreciation
Litecoin (LTC), often referred to as ‘digital silver’ within the crypto community, has experienced a noticeable upswing, recording a weekly increase of approximately 14% and a daily gain of 6.8%.
Factors Behind Rise
The primary factor influencing this rise is the anticipated halving event in August, accompanied by a surge in on-chain transactions and active whale movement. On-chain data analytics firm, Santiment, pinpoints three critical reasons behind Litecoin’s appreciating value:
The most substantial of these is the forthcoming Litecoin halving event set for August. For those unacquainted with the concept, a ‘halving’ is a scheduled event that cuts miners’ block rewards in half. At present, Litecoin miners earn 12.5 LTC for each new block mined; post-halving this reward will drop to 6.25 LTC – an essential aspect of certain cryptocurrencies designed to control inflation and increase scarcity over time. The last LTC halving took place in 2019 with the next one slated for 2027.
On-Chain Transactions & Whale Activity
Apart from the upcoming halving, two other significant factors are fuelling Litecoin’s value surge: an increased volume of LTC on-chain transactions reaching a two-year high indicating increased network activity and liquidity; plus marked increases in ‘whale’ activity referring to entities holding substantial amounts of LTC – the highest recorded since 2023 began pointing towards larger players taking positions or adjusting their holdings.
Overall it appears that Litecoin holders are preparing for potentially higher prices due to its upcoming halving event coupled with more active whale movement and increased on-chain activity driving up demand for LTC tokens – all good signs for bulls looking ahead!