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LTC is about to undergo halving, with market indifference and future prospects analysis.

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Although Litecoin's halving event is approaching, this article will explore the psychology of the halving event, whether Litecoin still needs to exist, and the market's reaction to it.

Original title: "Analysis of the Market's Indifference and Future Prospects as LTC Approaches Halving"

Original author: Alex

Original translation: Deep Tide TechFlow

Although the Litecoin halving event is approaching, the market's attention to it seems to be low, which has raised concerns about its future. In this article, researcher Alex will explore the psychology of the halving event, whether Litecoin still needs to exist, and the market's reaction to it. Here is the original text:

I have researched Litecoin and its upcoming halving event, which is about 70 days away. Therefore, the main focus of this article is the psychology behind the halving event and whether Litecoin still needs to exist.

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First, let's take a look at the historical background:

Litecoin was created in 2011 based on Bitcoin, with faster block times and a different mining algorithm. Like Bitcoin, Litecoin reduces block rewards every 4 years to reduce inflation and increase scarcity.

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Why is the halving event bullish?

Firstly, due to the halving of miner rewards, this reduces the structural selling supply. Decreased selling volume = price increase, it's that simple.

After experiencing three Bitcoin halving events, the price has shown a parabolic upward trend, and most people associate halving events with bullishness. The best narrative should be able to attract people of all levels of intelligence.

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Will the halving event always lead to a bullish market?

Not necessarily.

Due to the halving event reducing the amount of rewards, it reduces the diversity of participants who can profit and protect the network. Therefore, all other conditions being equal, each halving event weakens the security of the network while increasing its scarcity.

When people bid for the halving event, they are actually voting for the confidence in the security value of the network that deserves protection.

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Now let's take a look at the Litecoin halving event.

There are less than 70 days left until the halving event, and we have not yet seen strong interest from people. In the past, Litecoin's halving event reached its price peak about 50 days before the event.

We cannot infer from data points coming from two completely different tokens. But the stupidity of cryptocurrency has never stopped, and the indifference to the Litecoin halving event may be a sign that network security is not worth saving. Since 2019, more innovative cryptocurrencies have emerged in the market, leaving poor Litecoin behind.

But to be honest, I don't think Litecoin is ready to disappear just yet. When I talk to most people, they support the halving event, but there isn't a strong enough Schelling point to attract the bulls.

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Meanwhile, since the launch of LTC-20 (a branch of BRC-20 token standard on Bitcoin) on May 3rd, Litecoin's on-chain activity has been quietly growing. The trading volume in the past week is higher than ever before.

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Last week, Litecoin also set a new record for active addresses. It has its own various LTC-20 tokens for speculators to gamble on.

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There is a disconnect between the attention generated on the chain and the indifference towards price behavior.

Now may not be the right time to take risks on altcoins, as they have been slaughtered in the past few weeks.

But this also means that competition with other narratives has decreased.

Now may not be the right time, but I believe that if the market decides to save Litecoin, then the time is approaching.

If it doesn't appear in the next 100 days, I think this will be a good sign that other dinosaurs are gradually losing their influence.

*Disclaimer: I hold a position hedged against Bitcoin because I believe it is a fairly good risk/reward investment. This does not constitute investment advice, please conduct your own research.

Disclaimer: This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances and comply with relevant laws and regulations in their country or region.