Litecoin (LTC) just hinted that the network’s hashrate recently reached an All-Time High (ATH). This is despite the declining prices alongside Bitcoin (BTC) and other top cryptocurrencies. The upsurge in LTC’s hashrate has raised questions about whether the price will follow this positive movement.
Litecoin Hashrate Trends Since Past Halving
Litecoin’s hashrate, which measures computational power on the network, currently operates at 1.4 peta hash per second (PH/S). This is the first time the network has reached such a milestone in twelve years. The hashrate figures have notably increased despite minor LTC price declines in the last 24 hours.
Besides the hashrate, Litecoin’s mining difficulty, estimated at 41 million, is hovering near its newly established ATH. This trend represents a rising challenge for miners to find fresh blocks and reap rewards.
The increasing hash rate indicates miners’ confidence in the profitability of crypto mining, particularly since Litecoin’s last halving. Litecoin has had three halving events already—one in 2015, one in 2019, and another in 2023. On August 2, 2023, Litecoin rewards for producing a block were halved from 12.5 LTC to 6.25.
The price of LTC declined sharply after the event. LTC, priced at $93 at the time of the halving, dropped to a bottom of $60.5 in mid-September. This means LTC saw a price decline of about 35% in less than two months.
Following this crash, Litecoin recovered slightly, touching $80 in December 2023. At the time of writing, however, the price was changing hands at $65 and has yet to match its pre-halving value.
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Implication of Growing Hashrate for Network Security
Litecoin’s soaring hashrate indicates that Proof-of-Work (PoW) miners continue to allocate more computational power to mining and securing the blockchain. Thus, Litecoin’s strong hashrate contributes to the security of the network.
Although Litecoin’s security lies primarily in consensus between nodes, the computing power provided by miners protects the network from cyberattacks.
As such, the hashrate is vital for miners to assess the stability and potential profitability of participating in the network. A robust security can strengthen trust and reliability in the decentralized system.
Since its inception, Litecoin has had no downtime record, so it remains one of the most-rated L1s in the industry.
Litecoin Hashrate and Price Outlook
Analysts claim a correlation exists between hashrate and changes in the price of Litecoin. Their perspective is based on the profitability of Litecoin mining and the price of LTC.
The rising hashrate reflects miners’ confidence in the profitability of crypto mining, especially as the last half halving slashed earnings. As a result of this optimism, traders are more likely to hold or acquire LTC, driving up its price.
This reduction in supply has boosted prices and triggered increased network activity.
LTC’s price, although down in the last 24 hours, has soared in the past month. The past week alone brought a massive 7.5% surge, which helped the asset jump to $65.60.
Within 24 hours, the trading volume spiked slightly by 0.5%, indicating investors’ increased sentiment.
