Litecoin Achieves Impressive Milestones Before the Coming Halving Event
- Litecoin is outpacing the rest of the crypto market in terms of growth as it approaches its halving event.
- Litecoin futures derivative contract open interest has topped $420 million.
- The overall number of LTC addresses participating as senders and receivers has reached 832,000.
Open interest for Litecoin futures derivative contracts has surpassed $420 million globally, representing growth of over 20% year-to-date.
This surge in demand for LTC futures is the highest observed since the beginning of 2022, according to data from Coin Glass. Open interest refers to the total value of unsettled trading contracts and can be used to measure trends in interest for a particular asset.
The jump in open interest for LTC futures may be influenced by several factors, including the upcoming halving event for Litecoin, which is often referred to as the silver to Bitcoin’s gold.
Crypto analyst Ali Martinez has taken to Twitter to comment on the milestone achieved by the major cryptocurrency Litecoin, while the LTC halving event is just a few months away.
Martinez said that the biggest surge in the number of active LTC wallets over the past two years had been detected. The number of interacting LTC addresses reached 832,000 both as senders and receivers.
Aside from that, this year, the Litecoin network has demonstrated large growth. The number of transactions on it has increased by nearly 400%, the amount of the LTC supply held by retail users is around 50%, 60% of LTC holders are in high profit, and 3,900,000 wallets have been holding LTC for longer than a year. The coin’s hash rate has been up 25%, too.
During the halving event set for Aug 2, the rate of new coin issuance on the network will be halved, and the reduction in new coins could drive up the perceived value of Litecoin due to increased scarcity.
Litecoin has seen modest gains this month, rising almost 7% so far this month from $85.25 to $91.4, according to data from TradingView.
This was the result of the Litecoin network adopting the LTC-20 standard, which allows issuing of tokenized assets on Litecoin, similar to Ethereum’s ERC-20. Now, developers can create DeFi, dApps, NFTs, and other cryptocurrency-based assets on the LTC network.
The halving will occur on block 2,520,000, and miner rewards will drop from 12.5 LTC to 6.25 per new block, meaning that twice as few LTC will be minted with each block. This is expected to help the price of Litecoin rise, similar to the effect of halving Bitcoin.
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