A digital asset is bucking crypto’s downtrend, surging 43% to a six-month high as the majority of the cryptocurrency market slumps following the collapse of the FTX exchange.
Litecoin (LTC-USD) has surged 43% from $55 to $78.14 in the month of November due to an upcoming change in its mining rewards and the release of new coins.
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The so-called “Litecoin Halving” will reduce the rate at which new Litecoins are created, thereby lowering the available amount of new supply, which usually encourages price appreciation.
Litecoin traded flat in the last 24 hours.
Confidence in the crypto industry has taken a hit since the fall of FTX.
In contrast to Litecoin’s rise, crypto market leaders are bleeding.
Bitcoin (BTC-USD) fell 0.7% in the past week to $16,568, while ether (ETH-USD) fell 1.6% to $1,195.
When Litecoin launched in 2011, miners received 50 Litecoins for successfully mining a block.
This reward, also known as a “subsidy”, is halved every 840,000 blocks, which is roughly every four years.
The third halving will occur in 2023 and will see the current 12.5 LTC support reduced to 6.25 LTC.
Read more: FTX bankruptcy sees 80,000 UK crypto investors lose money
Litecoin saw an equally bullish move against the majority of the market in the months leading up to the previous halvings in August 2015 and August 2019.
The digital asset has climbed to its highest point since May this year.
However, it has not crossed over the trend line that characterizes the bear market that started in April 2021.
Litecoin is still far from its all-time high of $381 seen on May 10, 2021, on the eve of the catastrophic crash of the Terras UST/Luna stablecoin.
What is Litecoin?
Of the thousands of cryptocurrencies out there, many don’t have unique use cases or tokenomics to merit any standout features. Litecoin has been around for over a decade and is branded as the silver to bitcoin’s gold.
As a digital asset, it is similar to bitcoin in that it is validated via an energy-intensive proof-of-stake consensus algorithm. Litecoin has a limited supply of 84 million coins, while the maximum supply of bitcoin will always be 21 million.
The value of each litecoin is much less than each bitcoin and it can be mined using “regular” computers.
Dogecoin (DOGE-USD) is “merge mined” when a processor mines litecoin. Litecoin miners acquire an amount of dogecoins every time they mine a block of the Litecoin blockchain.
The cryptocurrency was created by software developers Charlie Lee 2011. Lee was Coinbase (COIN) Engineering Director until 2017.
Litecoin had a fair launch in 2011, and it has been reported that Lee did not give himself a stake before the launch, unlike many other crypto projects.
Although he mined Litecoin in the beginning, Lee now said that he has sold all his LTC.
Litecoin is not controlled by any centralized body and has a decentralized mining distribution of around eight main mining pools.
There is a Litecoin Foundation based in Singapore that has a stated goal of “advancing litecoin for the good of humanity”.
Solana crashes as Litecoin pumps
The panic in the wake of the FTX collapse has not been good for Solana (SOL-USD).
The price of Solana plummeted this month, and there are no bullish reversal signs in place here.
Solana received significant support from Sam Bankman-Fried’s Alameda Research in the early days of its conception.
The Swiss blockchain and cryptocurrency also has millions of dollars in value still locked up on the FTX exchange.
The Solana network’s native token, sol, has been trading flat this week, with a price of $14.46 at the time of writing.
Last week, crypto exchange Binance announced that it was temporarily halting deposits of USDT (USDT-USD) and USDC (USDC-USD) on the Solana network, which did not encourage investor confidence.
Deposits eventually resumed on Binance, reducing the fallout from Solana’s FTX exposure.