LTC surges 57% compared to FTX, ETH, Bitcoin

Since FTX filed for bankruptcy, Litecoin LTCUSD has outperformed all other cryptocurrencies, rising 57%, compared to Litecoin ETH USD, which rose 12%, and Bitcoin BTCUSD, which gained just 3%.

The rally is due to the upcoming LTC halving in mid- 2023, when the block reward will be slashed from 12.5 LTC to 6.25 LTC, according to Delphi Digital, a research platform.

The analyst note said that the LTC halving could capture market participants attention and could pull them away from other tokens with a market starved for narrative.

In the lead up to the August 2019 halving, LTC experienced a surge of more than 500% in a 200 day period, peaking two months prior to the event. If a similar scenario were to occur from June's low of $53, prices could potentially reach an interim high of $265.

What is halving? It is a deflation mechanism that is programmed into the criptocurrency network. The rewards miners get for generating blocks are halved every four years.

This helps in reducing the amount of newly created coins, but it is not beneficial for miners. The worth of existing LTC that can be mined is now half as many, which increases the worth of existing LTC that can be mined.

In August of 2015, the miners' rewards per block were decreased from 50 LTC to 25 LTC. In August 2019 the miners' reward was reduced to 12.5 LTC, as a result of the second halving.

In August 2023 Litecoin will experience its next halving, which will result in a decrease in the rewards for miners to 6.25 LTC, which is a 50% decrease from the current rate.

According to Benzinga Pro data, LTC was trading at $80.53, down 4% at the time of writing.

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