Litecoin ($LTC), a cryptocurrency that’s often referred to as the silver to Bitcoin’s gold, has potential to see significant gains against the flagship cryptocurrency ahead of its highly-anticipated August halving event, according to its creator Charlie Lee.
The cryptocurrency has already surged 85% since reaching a record low against Bitcoin in June 2022, and Lee believes that LTC/BTC could rally to 0.025 BTC, translating to an increase of over 700% during the next bull cycle.
This potential growth can be attributed to Litecoin’s inherent design features, Lee said, which include higher throughput, enhanced scalability with extension blocks, better fungibility, and increased privacy via MWEB.
Lee envisions an upside target of 10% (0.025 LTC/BTC) for Litecoin in the next bull market, and believes that a rise of at least 5% to 0.0125 BTC per Litecoin token “shouldn’t be too hard to achieve.” With the next halving expected to occur in a little over 90 days, he does not foresee a downside of over 1% to 0.0025 BTC as the excitement surrounding the cryptocurrency grows.
The recent price recovery of Litecoin has been accompanied by a growing buzz around the upcoming block reward halving. In August 2023, the Litecoin block reward for miners will be slashed by 50% from 12.5 LTC to 6.25 LTC.
Consequently, the new LTC supply will be reduced by half, theoretically making it scarcer on the market and driving its price upward if demand remains flat or grows.
As CryptoGlobe reported, historical Litecoin price data suggests that the price of Litecoin could surge months after its halving event to the point it hits a new all-time high next year. The cryptocurrency could, however, endure a correction right after the halving.
According to data analyzed by popular cryptocurrency analyst Rekt Capital, Litecoin “trends to rally quite strongly before its halving,” with the cryptocurrency rising 820% after bottoming out 122 days ahead of its first-ever halving, and rising 550% after bottoming 243 ahead of its second halving.
Historically, the cryptocurrency rallied more after its halving event. After its first halving, LTC surged 12,400%, while after its second halving it rose 1,573%.
It’s important to point out that the effect of halving events on the price of a cryptocurrency is not certain, and opinions on the matter vary among analysts. The past performance of a cryptocurrency does not guarantee future performance.
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