By HVY Journalists: Litecoin, which is now the No. 4 cryptocurrency based on market cap, is trading at its highest level in about a year. The LTC price is hovering at $127, up 11%, which is a level that it hasn’t been seen since May 2018, according to CoinMarketCap. Not only is Litecoin trading in the green but it appears to be leading the broader crypto market higher. Bitcoin remains below the $8,000 level but has gained 3% in the last 24-hour period.
The bullish vibe in the Litecoin price is being attributed to the upcoming halvening event, in which the block mining reward will be slashed from 25 LTC to 12.5 LTC. The shift in supply/demand dynamics has already begun to take hold in the price.
Litecoin Creator Charlie Lee tweeted about the excitement surrounding the crypto, saying that miners remain profitable thanks to cheap electricity prices. So even after the LTC block reward is lowered, mining will remain economical to do thanks to power rates falling as low as five cents and no more than a dime.
Joe DiPasquale, who is at the helm of crypto hedge fund, BitBull Capital, is quoted in Forbes as saying:
“Litecoin’s resilience and the recent surge are attributable to the upcoming halving.”
Litecoin isn’t the only cryptocurrency facing an upcoming halvening event. Bitcoin, from which Lee got his inspiration, is coming on its big day, which is less than 12 months from now. Bitcoin’s halvening will lower the Bitcoin block mining reward from 12.5 BTC to 6.25 BTC.
Meanwhile, crypto fund manager Brian Kelly has previously noted that historically, the halvening has proven to be a catalyst for as long as a year prior to and a year after the event. This appears to be the case for Litecoin, which has been in a bull market since before bitcoin in the current cycle. The LTC price has risen 400%-plus since year-end 2018.
Crypto Community Congratulates Litecoin
While the crypto ecosystem can be competitive, it also remains a community in the true sense of the word. Projects root for one another because, at the end of the day, the success of one project is a win for the entire industry. Just the same, when one project fails, the repercussions are felt throughout the entire market.
This became evident when Riccardo Spagni, who is the lead developer for privacy coin Monero, congratulated Litecoin, which aspires to be a privacy coin, for a new storefront “somewhere in Poland.”