In the crypto world, halving refers to an event where the block reward for cryptocurrency miners is reduced to half. Effectively, miners receive 50% fewer coins for every block they mine after a halving event. Halving creates scarcity of the corresponding cryptocurrency, increasing its value over time because of the law of supply and demand. The rationale is that after a halving event, mining becomes more expensive, leading to fewer new coins in the market. Several cryptocurrencies implement halving to remain deflationary, including Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), and Litecoin (LTC).
Halving is an event that generates a lot of interest among crypto market participants since it usually impacts that particular cryptocurrency’s performance and, in some cases, the entire market. Litecoin experienced its third halving event on August 2, 2023, around 15:45 UTC, and proceeded without incident at block 2,520,000. As a result, the block rewards were reduced from 12.5 LTC per block to 6.25 LTC.
Reportedly, the LTC price saw a near 8% crash immediately after the successful completion of the halving. So, in this article, we will review the implications for this cryptocurrency’s future and its impact on the crypto market.
Impact on the Litecoin (LTC) Price
Within 12 hours of the successful Litecoin halving, the LTC price crashed almost 8%, dropping from $94 to $86.1. However, the resulting crash deepened in the following days. On August 17, LTC traded at $65. As of September 12, 2025, the LTC price was around $60.4.
One month before the Litecoin halving, the LTC price was above $100, fueled by the excitement of this event. On July 2, LTC traded at around $113. This behavior is consistent with the LTC price moves before and after the Litecoin halving events in 2019 and 2015. So, what can we expect for the remainder of 2023?
Although the halving will eventually create scarcity, the current LTC downtrend will likely continue until the end of the year. In anticipation of the halving event, many traders and investors purchased LTC due to FOMO fueled by analysts predicting a significant bull run after August 2. However, this cryptocurrency was overbought, leading to a sell-off after the halving. Hence, the expected scarcity will not be noticeable in the short term. Consequently, short-term traders have incurred heavy losses after the halving.
On the other hand, long-term investors could reap good returns in the long run when the scarcity created by the halving becomes noticeable. According to several algorithm-based price predictions, LTC could start gaining momentum again in the second half of 2014. By Q4 2024, the LTC price could go above the $100 mark. By mid-2025, LTC could trade at $202. This rally could peak in Q3 or Q4 2025.
Impact on the Entire Crypto Market
Litecoin is the 15th most valuable cryptocurrency by market capitalization, according to CoinMarketCap. Crypto traders and investors refer to LTC as the digital silver, with BTC being the digital gold. This reference indicates the prominent place that Litecoin has in the market. Litecoin’s founder, Charlie Lee, and his brother, Bobby Lee, want to use this reputation to attract interest in this cryptocurrency by commemorating the third halving by issuing 500 collectible cards made of silver.
Many traders and investors will closely follow the effects of the latest Litecoin halving on the crypto market. However, this event might not significantly impact the price of other cryptocurrencies as the Bitcoin halving does. It is easy to see why. At the time of writing, Litecoin had a market capitalization of approximately $4.4 billion, whereas Bitcoin’s market cap was more than $505.5 billion. Bitcoin dominates the market, and its halving events significantly affect other crypto assets. That is not the case with the Litecoin halving.
Conclusion
The Litecoin halving was an event that created a lot of excitement among traders and investors. Many experts predicted a bull run for this cryptocurrency following the halving. However, it did not occur. On the contrary, the LTC price will likely be in a downtrend for the next few months. So, in conclusion, Litecoin will likely continue to lose value for the remainder of 2023, but a new rally could start in 2024. Hence, investing in LTC at the moment could be profitable in the long run. If you want to buy LTC, you can do it on LetsExchange.io at competitive rates.
FAQs
When will the next Litecoin halving take place?
It will occur in 2017 when the mining rewards will be reduced to 3.125 LTC per block.
What was the block reward for miners when Litecoin was launched?
When Litecoin was first mined on October 7, 2011, the mining rewards were 50 LTC per block.
How many halving events has Litecoin had since its appearance on the market?
Litecoin has had three halving events. The first occurred on August 25, 2015, at block 840,000, with mining rewards reducing to 25 LTC. The second Litecoin halving event occurred on August 5, 2019, at block 1,680,000, with mining rewards being reduced to 12.5 LTC. The third halving happened on August 2 this year, and it is the one described in this article.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.