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June 12, 2019 @ 11:54 +03:00
Year-to-date, litecoin price has increased by 357 percent against the U.S. dollar, outperforming every top ten crypto asset in the global market including bitcoin, Ethereum, and EOS. The consistent increase in the value of the crypto asset is said to have been triggered by the anticipation of its block reward halving that is expected to occur in about two months.
Crypto assets based on proof-of-work (PoW) blockchain networks that involve mining in the likes of bitcoin and litecoin go through a mechanism called halving every four years, an event that reduces the rate of the production of the assets by miners.
Litecoin is the only major crypto asset to match the performance of bitcoin since the 2017 bull market. Subsequent to achieving an all-time high at $20,000, the bitcoin price has dropped to $8,000, recording a decline of around 60 percent. Litecoin, with its recent recovery, has minimized its loss from ATH to 61 percent, closely following the performance of bitcoin.
Although fears of a correction have intensified in recent weeks following the showing of an extended period of stability by bitcoin and the large gain recorded by litecoin in the past several months, traders remain optimistic about the block reward halving. Litecoin is being driven by clear fundamental factors rather than technical factors. Hence, while many investors expect the asset to endure a pullback considering its recent performance, the general sentiment around the asset remains overwhelmingly positive.