Litecoin Miners Are Abandoning The Ship After The Halving Event

Litecoin miners decided to abandon the coin as soon as the block reward went through the highly anticipated halving event that happened on August 5^th as we reported in the previous altcoin news.

The entire network of the cryptocurrency was a bust story and now the litecoin miners decided to flee the ship as well. The block reward fell from 25 LTC to 12.5 LTC just a week ago and the event caused the price to boom for a short period of time to $140 but crashed later at $71.28. The hash rate dropped off from the 523 terahashes per second and reached a low of 295 per second. Only this month, the network lost more than 30 percent of its mining power.

LTC still keeps its spot among the leading altcoins because of its high liquidity and a good performance this year overall. However, the drop in hash rate could be a bad sign for the future of the cryptocurrency but also for the bitcoin network as well. Bitcoin will go through its third halving next year and for the immense computational efforts for discovering a single block, the miners will receive up to 6.25 BTC. This decreased payout could influence some miners to give up on the network but currently, the Bitcoin mining is near a peak reaching 100 million terahashes per second.

The block reward is likely not the only reason for the weak Litecoin mining. The entire negative attitude to altcoins could be the reason for sparking fears for a weak LTC market price that cannot pay for the mining operations. The calculations also revealed that mining LTC right now is happening with a small daily loss. The L3 miners are also not enough for a competitive edge to block the discovery so 12.5 LTC per block is not good enough for the miners. The Litecoin project has also received bad publicity due to the lack of innovation and the coin is now in a stagnant position after more than a year of active publicity and innovations. The achievements such as the atomic swaps between the networks and the Litecoin Lightning Network haven’t created a new appeal for LTC  as the reports outlined in the latest cryptocurrency news.