The cryptocurrency community is expecting to see the price of Litecoin ($LTC), a cryptocurrency often referred to as the silver to Bitcoin’s gold, moving down slightly over the course of March, to trade at $82.9 by the end of the month.
The data comes from CoinMarketCap’s price estimates feature, which has seen nearly 2,000 of its community members estimate the price of LTC for the end of this month. The average estimate sees the price of the cryptocurrency drop 7.2% this month, amid a slowdown in the market.
It’s important to point out that the cryptocurrency community’s predictions may not come to life at all. According to the platform, the community’s historical accuracy is of little over 87%, with recent data showing it was at around 99% in December 2022 and at 80% in January, before rising to 88.6% last month.
The price of Litecoin has surged more than 50% over the past 6 months, despite losing around 5% of its value over the last 30 days amid a wider cryptocurrency market sell-off. The cryptocurrency, as CryptoGlobe reported, has seen its price movements being largely supported by so-called sharks, or large addresses.
Litecoin’s rally was supported by addresses holdings between 100 and 10,000 $LTC, or between $9,470 and $947,000 at the time of writing, which have accumulated 1.15 million – over $100 million – coins in the last six months.
Much like BTC, Litecoin undergoes halving events, in which the coinbase reward for miners who find blocks on the network is halved. Litecoin’s next halving event is expected to occur in August 2023, and will reduce mining rewards from 12.5 LTC to 6.25 LTC. Halving events are seen as bullish, as new supply on the market is halved through them.
According to data analyzed by popular cryptocurrency analyst Rekt Capital, Litecoin “trends to rally quite strongly prior to 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%. Litecoin’s halving is set to occur in August 2023.
Litecoin’s sharp rise in addresses comes at a time in which its hashrate hit a new all-time high of around 680 TH/s. Litecoin uses a Proof-of-Work (PoW) consensus algorithm, just like BTC, but with a different hashing algorithm.
Featured Image via Pexels