Is the halving effect going to fail? Litecoin is still 5 days away from halving, and it may not rise sharply this time

There are only five days left until the Litecoin (LTC) halving. The Litecoin (LTC) mining reward will effectively be halved, with each miner receiving 12.5 LTC for finding a new block, up from the current reward of 25 LTC. The last block reward halving will occur in 2140.

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The halving event remains a hot topic of discussion among cryptocurrency enthusiasts. If Google Trends data is taken into account, the term “Litecoin halving” has attracted more attention than the creator of Litecoin, “Charlie Lee”. The price of LTC has surged significantly, surpassing the $140 resistance level, sparking the hype in mid-June.

LTC escaped the crypto winter season long before the halving event, and as the halving draws closer, there has been a lot of speculation about its possible future direction. Although many in the crypto space predicted a drop in the LTC market after the recent market drop, LTC has risen 196.8% since the beginning of the year, surging from $30.46 to $90.42 at press time.

Putting aside all the noise, the price increase has coincided with the growth of the hash rate, which reached an all-time high of 523.81T on July 14, 2019. The growing hash rate shows impressive mining fundamentals, as the halving is approaching and the community expects mining rewards to drop subsequently.

As of press time, Poolin mining pool contributed 91.7 TH/s, while F2Pool contributed 86.3 TH/s. LTC.top and LitecoinPool.org followed closely behind with 50.8 TH/s and 45.4 TH/s respectively.

These numbers highlight the upcoming halving event and its impact on the Litecoin community. Bitcoin's price has seen a significant increase before the halving, which has occurred twice in the past, but no significant increase has been found after the halving. The same effect has been seen with Litecoin. Charlie Lee, the creator of Litecoin, often compares Litecoin to silver and Bitcoin to gold.

Bitcoin, Litecoin and many other cryptocurrencies have very important sound money properties, namely scarcity and limited supply of the currency. Satoshi Nakamoto was sure that this would be a factor in his brainchild to thrive. Due to this special property, the rise of Litecoin and Bitcoin in the year before the halving is visible.

Combine a sound monetary asset with the sentiment of people (especially miners), and the price increase makes even more sense. Humans are creatures of habit. Everything in the universe is math; from the basic building blocks of life, DNA, to solar systems and galaxies. They all follow fractals; fractals repeat over different timeframes. The same is true for the price cycles of Litecoin and other cryptocurrencies.

Therefore, we can conclude that while Litecoin will not see any major rally after the halving, the price will definitely surge eventually as demand increases and supply decreases.