One digital asset is countering crypto’s downtrend, climbing 43% to a six-month high as much of the crypto market drops following the crash of the FTX exchange.
Litecoin (LTC-USD) rose 43% from $55 to $78.14 in November due to the upcoming change in mining rewards and the release of new coins.
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The so-called “Litecoin halving” will reduce the rate at which new Litecoins are created and thus reduce the amount of new supply available, which usually drives prices up.
Litecoin has been trading unchanged for the last 24 hours.
Trust in the crypto industry has been hit hard since the fall of FTX.
Unlike the Litecoin surge, the crypto market leaders are bleeding to death.
Bitcoin (BTC-USD) fell 0.7% last week to $16,568 and 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 the “subsidy”, is halved every 840,000 blocks, which is roughly every four years.
The third halving will take place in 2023, when the current subsidy will be reduced from 12.5 LTC to 6.25 LTC.
Read more: FTX Bankruptcy Loses 80,000 UK Crypto Investors
Litecoin showed the same bullish move against most of the market in the months leading up to the previous halvings in August 2015 and August 2019.
The digital asset reached its highest level since May of this year.
However, it did not cross the trend line that characterizes the bear market that began in April 2021.
Litecoin is still far from its all-time high of $381, recorded on May 10, 2021, on the eve of the catastrophic collapse of the Terra UST/Luna stablecoin.
What is litecoin?
Of the thousands of cryptocurrencies in existence, many do not have unique use cases or tokenomics to merit any outstanding qualities. Litecoin has been around for over a decade and is marketed as silver compared to bitcoin gold.
As a digital asset, it is similar to bitcoin in that it is verified using the 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 cost of each litecoin is much less than each bitcoin, and it can be mined using “regular” computers.
Dogecoin (DOGE-USD) is “merge mined” when the processor mines litecoin. Litecoin miners get mined dogecoins every time they mine a block of the Litecoin blockchain.
Cryptocurrency was created by a software developer Charlie Lee in 2011. Li was the CTO of Coinbase (COIN) until 2017.
Litecoin had a fair launch in 2011 and it was reported that Lee did not give himself a stake before the launch, unlike many other crypto projects.
While he was mining Litecoin in the early days, Lee now said he sold all of his LTC.
Litecoin is not controlled by any centralized authority and has a decentralized mining distribution around eight major mining pools.
There is a Litecoin Foundation in Singapore, whose stated goal is to “promote litecoin for the benefit of mankind.”
Solana drops as litecoin pumps
The panic after the collapse of FTX did not benefit Solana (SOL-USD).
Solana’s price has dropped sharply this month and there are no signs of a bullish reversal here.
Solana received substantial support from Sam Bankman-Fried’s Alameda Research in the early days of her concept.
The Swiss blockchain and cryptocurrency also have millions of dollars of value still locked on the FTX exchange.
The Solana network’s native token, sol, traded unchanged this week at $14.46 at the time of writing.
Binance announced last week that it was temporarily suspending USDT (USDT-USD) and USDC (USDC-USD) deposits on the Solana network, which did not help investor confidence.
Deposits eventually resumed on Binance, which lessened the impact of Solana’s exposure to FTX.