Activity on the Litecoin ($LTC) netowrk has surged as August approached, as the cryptocurrency that’s often referred to as the silver to Bitcoin’s gold is set to undergo its third halving event then. The event will reduce the per-block reward from the current 12.5 Litecoin (LTC) to just 6.25 LTC, a move that history suggests could spur an uptick in demand and thus a potential surge in price.
In the run-up to the halving, which is slated for August 10, Litecoin’s price has edged up to $92, reflecting a series of solid gains. Yet the price increase is just one facet of the excitement surrounding the upcoming event. Several key on-chain metrics also point to a healthy and vibrant Litecoin network.
Data from IntoTheBlock, a leading blockchain analytics firm, indicates that Litecoin’s network activity has been robust. The total number of Litecoin addresses holding a balance has seen a substantial uptick since the end of April, reaching nearly 8.5 million.
Moreover, the number of new and active addresses on the network has been hovering near all-time highs set earlier this year, and there was even a brief period when the creation of new Litecoin addresses outpaced those for Bitcoin.
Crypto analytics platform Santiment has noted that the escalating on-chain volume could be a strong indicator of institutional interest in Litecoin, particularly in light of the forthcoming halving event. CoinShares’ latest Digital Asset Fund Flows report has shown that while crypto funds lost millions LTC and XRP drew in investors.
The firm also highlights a surge in unique addresses interacting on the Litecoin network, a trend that could be interpreted as users stockpiling Litecoin ahead of the halving.
The halving event is also having a noticeable effect on Litecoin’s derivatives market. As CryptoGlobe reported, LTC futures derivative contracts have seen an open interest exceeding $420 million, marking an impressive 22% growth since the beginning of the year.
Open interest refers to the number of outstanding derivatives contracts. According to data analyzed by popular cryptocurrency analyst Rekt Capital, Litecoin “trends to rally quite strongly before its halving,” with the cryptocurrency rising 820% after bottoming out 122 days ahead of its first-ever halving, and rising 550% after bottoming 243 ahead of its second halving.
Historically, the cryptocurrency rallied more after its halving event. After its first halving, LTC surged 12,400%, while after its second halving it rose 1,573%.
Over the past month, Litecoin, a cryptocurrency that’s often referred to as the silver to Bitcoin’s gold, has been on a steady ascent, exhibiting nearly 7% growth and nudging its value from $86 to $92.
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