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The crypto token defying crash and FTX collapse

Litecoin Representation of crypto is seen in this illustration photo taken on September 28, 2021 in Krakow, Poland.  (Photo illustration by Jakub Porzycki/NurPhoto via Getty Images)

Crypto token Litecoin surged 43% in November due to an upcoming change in its mining rewards and the issuance of new coins. Photo: Jakub Porzycki/NurPhoto via Getty

One digital asset is bucking crypto’s downtrend, surging 43% to a six-month high as the majority of the cryptocurrency market nosedives following the FTX exchange crash.

Litecoin (LTC-USD) surged 43% from $55 to $78.14 in November due to an upcoming change in its mining rewards and the issuance of new coins.

Cheque: Crypto live prices

The so-called “Litecoin Halving” will reduce the rate at which new Litecoins are created, thereby reducing the available amount of new supply, which usually encourages price appreciation.

Litecoin has traded flat over the past 24 hours.

Confidence in the crypto industry has taken a hit since the fall of FTX.

In contrast to Litecoin’s boom, crypto market leaders are booming.

Bitcoin (BTC-USD) fell 0.7% to $16,568 in the past week, while ether (ETH-USD) fell 1.6% to $1,195.

When Litecoin was launched in 2011, miners received 50 litecoins for successfully mining a block.

This reward, also known as a “subsidy”, is halved every 840,000 blocks, which is approximately every four years.

The third halving will take place in 2023 and will reduce the current 12.5 LTC subsidy to 6.25 LTC.

Read more: FTX bankruptcy causes 80,000 UK crypto investors to lose funds

Litecoin saw an equally bullish move against the majority of the market in the months leading up to the previous halvings in August 2015 and August 2019.

The digital asset climbed to its highest point since May this year.

However, it did not cross above the trend line that characterized the bear market that started in April 2021.

Litecoin is still far from its high of $381 seen on May 10, 2021, on the eve of the disastrous collapse of Terra’s UST/Luna stablecoin.

What is Litecoin?

Of the thousands of cryptocurrencies that exist, many lack unique use cases or tokenomics to merit any outstanding attributes. Litecoin has been around for over a decade and is branded as the silver to bitcoin’s gold.

As a digital asset, it is similar to bitcoin in that it is validated by an energy-intensive proof-of-stake consensus algorithm. Litecoin has a finite supply of 84 million coins, while bitcoin’s maximum supply will always be 21 million.

The value of each litecoin is much less than each bitcoin and it can be mined with “regular” computers.

Dogecoin (DOGE-USD) is “merger mined” when a processor mines litecoin. Litecoin miners get a bunch of dogecoins every time they mine a block of the Litecoin blockchain.

The cryptocurrency was created by software developer Charlie Lee in 2011. Lee was Coinbase (COIN) Engineering Director until 2017.

Litecoin had a fair launch in 2011, and it was reported that Lee did not give himself a pre-launch share, unlike many other crypto projects.

Although he mined Litecoin in the early days, Lee has now said that he has sold all his LTC.

Litecoin is not controlled by any centralized body and has decentralized mining distribution of around eight main mining pools.

There is a Litecoin Foundation based in Singapore that has a stated goal of “advancing litecoin for the good of mankind”.

Solana crashes as Litecoin pumps

The panic in the wake of the FTX crash was not good for Solana (SOL-USD).

The price of Solana has fallen this month, and there are no bullish reversal signs in place.

Solana received significant support from Sam Bankman-Fried’s Alameda Research in the early days of its conception.

The Swiss-based blockchain and cryptocurrency also has millions of dollars in value still locked on the FTX exchange.

The Solana Network native token, sol, has traded flat this week, trading at $14.46 at the time of writing.

Last week, the crypto exchange Binance announced that it was temporarily suspending deposits of USDT (USDT-USD) and USDC (USDC-USD) on the Solana network, which did not encourage investor confidence.

The deposits eventually resumed on Binance, reducing the fallout from Solana’s FTX exposure.

Watch: Get Your Money From Exchanges Warn Bitboy Crypto After FTX Scandal | The Crypto Mile

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