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As Litecoin nears its third halving, analysis indicates that this event is its most crucial to date.
Litecoin halving
A recent Twitter thread from Alex of the crypto proprietary trading firm Scimitar Capital raised the question of “whether Litecoin still needs to exist.”
The core of the thread featured a price chart that overlaid previous halvings based on the days leading up to and following the event against the percentage price increase on the y-axis.
Alex observed that, for the earlier halvings, the period of -100 days prior marked the beginning of the anticipated price uptrend — with -50 days witnessing a price peak.
Source: @thiccythot_ on Twitter.com
At the current rate of block production, the forthcoming halving is expected to take place in 79 days — specifically on August 3. Following this date, the block reward will decrease from 12.5 LTC to 6.25 LTC.
Alex noted that the price of Litecoin has not yet responded as it did during previous halvings. However, he recognized that drawing conclusions from merely two data points may not constitute a sound approach.
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Why this matters
Given the absence of price reaction thus far, Alex expressed concern, stating that halvings represent “a vote of confidence in the network.”
“When people bid Halvenings, it is actually a vote of confidence in the network that its security is worth preserving
The Bitcoin Halvening in 2024 will likely be a strong coordination for bidders of all shapes to coordinate
Because the survival of Bitcoin is worth it.”
He questioned whether the current indifference is an indication from the market that Litecoin “isn’t worth saving.”
Nevertheless, he asserted that he does not believe Litecoin is on the verge of extinction just yet — attributing the apathy to a lack of a compelling narrative to foster bullish sentiment.
Supporting this perspective, Alex highlighted the increase in on-chain activity since May 3 — spurred by the rollout of the LTC-20 token standard. This was accompanied by active addresses reaching an all-time high last week.
In conclusion, “There is a disconnect between the attention on-chain versus an apathy in the price action,” stated Alex. However, the recent weakness in altcoins may be a (temporary) contributing factor.
In closing, he mentioned that if a price surge does not occur within the next 100 days, it could signal the end for Litecoin — along with other “dinos[aurs],” which may fade into obscurity.
The post It’s do-or-die for Litecoin as halving approaches appeared first on CryptoSlate.
