Litecoin (LTC) has indicated that the network’s hashrate recently reached an all-time high (ATH). This is despite the price falling alongside Bitcoin (BTC) and other major cryptocurrencies. The rise in LTC’s hashrate has raised questions about whether the price will follow this positive movement.
Litecoin hashrate trends since past halvings
Litecoin’s hashrate, which measures the computational power on the network, currently operates at 1.4 Petahash per second (PH/S). This is the first time in 12 years that the network has reached such a milestone. Despite the slight drop in LTC price over the past 24 hours, hashrate numbers have increased significantly.
In addition to hashrate, Litecoin’s mining difficulty is estimated at 41 million, hovering around the newly established ATH. This trend represents an increasing challenge for miners to find new blocks and earn rewards.
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The increase in hashrate shows that miners are confident in the profitability of cryptocurrency mining, especially since Litecoin’s previous halving. Litecoin has already had three halving events, one in 2015, one in 2019, and one in 2023. On August 2, 2023, the Litecoin reward for block production was halved from 12.5 LTC to 6.25 LTC.
After the event, LTC prices plummeted. The price of LTC was $93 at the time of the halving, but it fell to a low of $60.5 in mid-September. This means that the price of LTC has fallen by about 35% within two months.
After this crash, Litecoin recovered slightly and reached $80 in December 2023. However, as of this writing, the price remains at $65, which is still below its pre-halving value.
Impact of increasing hashrate on network security
The spike in Litecoin’s hashrate shows that Proof-of-Work (PoW) miners continue to allocate more computing power to mining and securing the blockchain. Therefore, Litecoin’s strong hashrate contributes to the security of the network.
Litecoin’s security is primarily based on agreements between nodes, but the computing power provided by miners protects the network from cyberattacks.
Therefore, hashrate is essential for miners to evaluate the stability and potential profitability of participating in the network. Robust security strengthens the reliability and trustworthiness of distributed systems.
Litecoin remains one of the most respected L1s in the industry as it has no record of downtime since its inception.
Litecoin hash rate and price outlook
Analysts claim that a correlation exists between hash rate and Litecoin price fluctuations. Their perspective is based on the profitability of Litecoin mining and the price of LTC.
The rise in hashrate reflects miners’ confidence in the profitability of crypto mining, especially after the decline in revenue during the late halving. As a result of this optimism, traders are more likely to hold or acquire LTC, causing its price to rise.
This reduction in supply caused prices to rise and network activity to increase.
The price of LTC has fallen over the past 24 hours, but has soared over the past month. Last week alone delivered a massive 7.5% increase, sending the asset soaring to $65.60.
Within 24 hours, trading volume jumped slightly by 0.5%, indicating heightened investor sentiment.
