Litecoin Hash Rate Is Stable Despite Dismal Price Movement: Will This Change?

One week after the highly anticipated Litecoin halving event on August 2, on-chain data shows that the network’s hash rate, a key measure of the computing power delivered to the network, has fallen. steady But it is irregular.

As of August 9, the tracker shows that the Litecoin network’s hash rate is hovering around 760 TH/s, a notable decrease from the all-time high of 816 TH/s recorded in late July 2023.

Litecoin price is stable but low, is a rebound coming?

Litecoin price, on the other hand, remained strong but fell in last week’s trading. CoinMarketCap data On August 9th, LTC was seen trading at $83, down 5% from the previous week. What is clear is that prices are moving closely within a consolidation range.

Despite this decline, LTC has been relatively resilient, rising 17% from its June 2023 low. However, a top-down preview shows the coin is down 26% from its 2023 high. In the medium term, LTC remains bullish as the downtrend failed to clear the uptrend posted from mid-June to mid-July 2023. But it is also unclear whether control will be maintained after the rally is halved.

If past performance is any guide, there is a glimmer of hope for the bulls. The previous Litecoin halving in August 2019 was just months before LTC ripped to $400 in 2021. Nonetheless, prior to this surge, the price of LTC had nearly halved from $66 to $35 in December 2019.

Unlike previous halvings, the cryptocurrency space has matured and regulatory clarity has improved, especially with respect to Bitcoin, the underlying protocol from which Litecoin emerged. For example, while most U.S. regulators consider Bitcoin a commodity, the Securities and Exchange Commission (SEC) is taking a cautious stance toward other altcoins.

Tracking on-chain metrics to measure interest

Considering the above challenges and regulatory uncertainties, we actively monitor the correlation between hashrate and spot prices. Litecoin relies on decentralized miners for security and transaction verification.

The security of a network is assessed through the hash rate metric. This runs the risk of a crash as miners will have to allocate more resources after the network halves the reward to 6.25 LTC. A potential price drop could trigger a decrease in hash rate, forcing the network to adjust its difficulty.

How this will develop is yet to be seen, and the network will remain stable with spot rates. Aside from the hash rate being near an all-time high, network activity appears to have been unaffected. According to IntoTheBlock dataDespite the generally negative sentiment towards LTC, the average growth of the network is stable.

Featured image from Canva, chart from TradingView