Litecoin’s hashrate – a measure of miner’s performance or the speed at which the miner solves the algorithm – has hit all-time highs two months ahead of mining reward halving.
The aggregated network capacity printed a record high of 373.9814 TH/s on June 2, surpassing the previous high of 371.9233 TH/s hit on May 16, according to BitInfoCharts.
At press time, the hashrate is seen at 360.4465 TH/s, representing a 146 percent rise on the low of 146.2118 TH/s registered on Dec. 12, 2018. Interestingly, the price of a single litecoin has increased more than 350 percent during the same time period.
The bullish price action seems to have attracted miners, leading to a record high in the hashrate.
The rise in the hashrate could also be associated with the rumors that new mining hardware, currently deployed at Bitmain’s mining farms, will be released in the near future.
According to Richards, the L5 marks a vast improvement on current mining equipment.
“The stats provided show quite a drastic improvement over the previous generation L3++ more than doubling the hashrate output from 580 MH/s.”
An increased hash rate brought on by new mining hardware is beneficial says Richards.
“If the L5 is released it would allow the network to recover quicker due to increased efficiency and reduced overheads assuming the market price doesn’t take a sharp decline during this time.”
Notably, the spike in non-price metric has come two months ahead of the mining reward halving.
On Aug. 8, the reward for mining on litecoin’s blockchain will be reduced from 25 LTC to 12.5 LTC. The shift means miners will be adding fewer coins to the ecosystem after August, possibly leading to supply deficit.
The litecoin market likely priced in the impending supply cut with 100 percent price gains in the first quarter. The cryptocurrency could once again pick up a strong bid in weeks leading up to the halving event.
The process aimed at curbing inflation is repeated every four years and tends to put a strong bid under the cryptocurrency at least a few months in advance, according to historical data.
As of writing, litecoin is changing hands at $102 on Coinbase, down 16.4 percent from the high of $122 reached on May 22.
Disclosure: The authors hold no cryptocurrency at the time of writing.
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