Litecoin Hits One-Month Low Following Halving Event, Dogecoin Tumbles 4% As Well

The price of Litecoin LTC/USD, the native token of the Litecoin blockchain, dropped to its lowest level in a month on Wednesday afternoon, shortly after undergoing its highly anticipated “halving” event.

What Happened: LTC reached a low of $86, a price point not seen since June 30. The cryptocurrency experienced a decline of approximately 6% throughout the day, underperforming both Bitcoin BTC/USD and Ethereum ETH/USD, which were down 2% and 2.25% respectively.

The decline in price followed Litecoin’s third halving event since its inception in 2011. Similar to Bitcoin halvings, this event occurs approximately every four years and involves cutting the rewards for miners in half, thereby reducing the issuance of new LTC tokens.

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Why It Matters:  However, the price performance of LTC around halving events differs from that of BTC. While Bitcoin tends to rise in value following halvings, Litecoin has historically peaked prior to the event and subsequently experienced a downward trend for several months.

After the halving event in August 2015, litecoin maintained a trading range of $2.8 to $3.6 for a period of 19 months. Interestingly, a similar pattern emerged following the August 2019 halving event.

Notably, the Litecoin blockchain provides security to Dogecoin DOGE/USD. Originally created as a joke in 2014 by software engineers Billy Markus and Jackson Palmer, Dogecoin has gained attention, particularly through mentions by Tesla CEO Elon Musk on his social media platform, X — formerly known as Twitter.

On the account of LTC trading low, DOGE was also seen tumbling over 4% in the last 24 hours.

Photo Courtesy: Shutterstock.com

Read Next: Bitcoin, Ethereum, Dogecoin Tumble As Investors Shrug Off Macro Events: Analyst Predicts Prolonged Range Trading In Cryptoverse As Fresh Capital Remains Elusive

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Posted In: CryptocurrencyNewsMarketsBilly MarkusBitcoindogecoinElon MuskEthereumLitecoin
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