Litecoin (LTC) went through the halving process in August and three months down the line, Litecoin hash rate is on a downward trend, leading to all-time lows in mining profitability. This massive drop in mining activity heralds yet another downbeat report for the sixth-largest digital asset in terms of market size. Earlier in the year, reports emerged that developers showed a lack of interest in supporting its cryptocurrency code.
According to data from BitInfoCharts.com, Litecoin hash rate has dipped by over 60 percent since the August halving. These figures simply perpetuate a downward trend in mining activity that started back in the summer of 2019.
What Does This Mean?
The massive decline in the hash rate indicates a dwindling miner interest in Litecoin. The miners of the sixth-largest cryptocurrency by market capitalization are leaving the network in masses, leading to lower computing potential on the network.
Besides, the hash rate decline of huge proportions can pose a security risk to the network. If the situation persists, the reliability of the Proof-of-Work (PoW) functions on the blockchain are at risk. For Litecoin, the falling hash rate after halving is even more worrying, as the halving process should drive a scarcity that leads to higher values per unit.
The halving process, according to analysts, should be a trigger for improving the market value of PoW crypto. Unfortunately, LTC miners are not fulfilling this goal, which means they might be focusing on other cryptocurrencies, that are more valuable. Litecoin mining profitability is currently at an all-time low, based on the data from BitInfoCharts.com.
A Familiar Tale for LTC?
Litecoin has been entangled in a series of issues and the dwindling hash rate is just a fraction of its share of challenges. Regardless of its notable achievements, such as the atomic swaps and the Litecoin Lightning Network, the overall appeal of the altcoin has not seen any major improvement.
During the altseason in 2019, Litecoin was among the top ten altcoins, with its price surging to $140. However, the price has dropped significantly by about 60 percent. As of this writing, LTC is valued at $57.63 on CMC.
Featured Image: BTCNewz