- Litecoin (LTC) achieved an unprecedented all-time high in mining difficulty, reaching 30.03 million, reflecting a notable 6% surge within the last 24 hours.
- The heightened mining difficulty enhances network security, counters manipulation risks, and signals bullish prospects for LTC’s long-term growth.
Litecoin (LTC), a prominent Proof-of-Work (PoW) blockchain, achieved an all-time high (ATH) in mining difficulty, reaching an impressive 30.03 million, as reported by Litecoin Space data.
This surge in difficulty represents a notable increase of nearly 6% within the last 24 hours and a significant 16% rise over the past week. Mining difficulty plays a crucial role in ensuring the security of a blockchain and validating PoW blockchains, influencing the issuance of their native cryptocurrencies.
Experts and traders closely monitor mining-related metrics as indicators of network health. Mining difficulty is regularly adjusted based on the total network hash rate to maintain a consistent block generation time, which stands at 2.5 minutes on the Litecoin blockchain.
The recent spike in hash rate, peaking at 872 TeraHashes per second (TH/s) at the time of reporting, indicates a substantial increase in mining capability. This surge could be attributed to an influx of miners or the adoption of advanced mining equipment. Consequently, the increased mining capability prompted the adjustment of difficulty.
A higher mining difficulty level not only enhances network security but also mitigates the risk of manipulation by a limited number of powerful entities. Furthermore, the expanding miner count signals network growth, providing a bullish indication for LTC in the long term.
Litecoin Network Utilization On The Rise
Litecoin (LTC) has demonstrated remarkable activity throughout December 2023, with daily active users and on-chain transactions reaching unprecedented levels. On December 8, active addresses surged to an all-time high (ATH) of 1.39 million, based on data from Santiment.
Despite the surge in network traffic, transaction fees have remained under control. On average, miners earned $1.84 for every block produced, according to data from Litecoin Space. This figure stands in stark contrast to the $3.44 per block charged during the Ordinals frenzy in May. One plausible explanation for this disparity could be the notable increase in hash rate, ensuring swift inclusion of transactions in blocks and reducing the need for users to bid up fees to expedite their transactions.
The positive momentum in mining indicators has had a favorable impact on LTC, often referred to as the “digital silver.” Over the last 24 hours, LTC has grown by 2.58%. As of press time, Litecoin (LTC) is trading at 2.71% down at $71.80, and has a market cap of $5.3 billion.
The upcoming significant hurdle lies in the vicinity of the $76.00 level. A decisive breakthrough above this level has the potential to propel the price towards the $80.00 zone. Subsequently, a more formidable resistance is anticipated at the $85.00 level, with further gains possibly steering the price towards the $88.00 level.
On the downside, the initial support is expected around the $72.20 level, followed by more substantial support at the $70.00 level. Should there be a downside breach below the $70.00 support, it could trigger a swifter descent, bringing the price closer to the $65.00 level in the near term.
